Gold Price turns south again after a mixed trading action on Wednesday. A test of multi-month lows sub-$1,800 remains on the cards, FXStreet’s Dhwani Mehta reports.
Symmetrical triangle breakdown looks likely on XAUUSD’s 4H chart
“The dynamics of the dollar and the yields will remain the key catalyst behind gold’s valuations, as the US docket has no top-tier data to offer. The sentiment on global stocks will be also closely eyed for fresh trading opportunities in the precious metal.”
“A four-hourly candlestick closing below the rising trendline support at $1,813 is needed to validate a breakdown, opening floors for a retest of the $1,800 mark. The next critical support awaits at the multi-month lows of $1,787.”
“Recapturing the horizontal 21-Simple Moving Average (SMA) at $1,816. is critical to alleviating the bearish pressure, which could see gold bulls re-attempting the falling trendline resistance at $1,819. Acceptance above the latter will kickstart a fresh upswing towards the descending 50-SMA at $1,831. Ahead of that, Wednesday’s high of $1,825 will challenge the bearish commitments.”
GBP/USD renews two-week highs, trades above 1.2500
GBP/USD has gained traction and climbed to its strongest level in two weeks above 1.2500. The weaker-than-expected macroeconomic data releases and falling US yields cause the dollar to stay under constant selling pressure, helping the pair push higher.
Dollar’s sell-off underpins gold
Gold is up to on Thursday, trading above $1,840 after hitting an intraday high of $1,849.18. The dollar changed course after soaring on Wednesday and is in franc decline across the FX board. However, action in stock markets is choppy.
Crypto bloodbath hasn’t even started yet
Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday.