Gold falls; how far can it go? | IFCM
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Gold falls; how far can it go?

Gold down earlier in Asian season as USD is back on track with higher Treasury yields to 1.698.

On the other hand, the increasing hope of faster recovery and optimism on earning reports, lowering the demand for safe-havens.

While the FED's published data increased the hopes on faster recovery, investors waiting for Today's U.S. inflation data and Fed Chairman Jerome Powell's speech at an Economic Club of Washington event on Wednesday. The central bank also will release its Beige Book on Wednesday.

So far, Gold lost 0.3% down to 1,727, while in other precious metals, silver gain 0.3%, palladium rose by 1.6%, and platinum slipped 2.9%.

Treasure auctions will include $24 billion of 30-year bonds today and a total of $151 billion in bills. On Monday, both three and 10-year notes worth $96 billion in full sold by the U.S. Treasury. We expect more increase in bond yields, which are supposed to send the USD higher and put the Gold under pressure. However, it must be short-term. Higher inflation in the mid and long term must pressure USD and raise the demand for Gold.

Technical overview - H1 Chart


Gold moves clearly in a downtrend, as RSI shows 38, price moves under the middle line of B.B., and OBV trend line. Pivot point at $1,735 will support more profound prices, while S2 & S3 at 1,717 and 1,707 follow targets if we can pass the S1 once more at 1,725. $1,690 still is an essential and key level, which breaching under that will open the door for another free-fall. On the flip side, another return from that will put the $1,800 in the spotlight.

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Publish date
26/12/23

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