Gold Draws Sellers Below $1,980
Updated
The price of gold experienced a decline, nearing $1,978 during the first trading hour in Asia on Monday. The softer US Dollar (USD) and a decrease in interest rates for US Treasury bonds may influence the rise in the value of this precious metal. Traders of XAU/USD will closely monitor the Federal Open Market Committee (FOMC) meeting minutes scheduled for Tuesday. Gold prices surpassed the 21-day Simple Moving Average (SMA) at $1,974 and closed higher on Thursday, bolstering buyer momentum.
The 14-day Relative Strength Index (RSI) comfortably remains above the midline, providing support for the upward trend.
The next resistance level is identified at the declining trendline's resistance around $1,992, close to the highest point on November 6 at $1,993. Acceptance above this level will challenge gold buyers to breach the $2,000 mark.
Furthermore, a static resistance zone around $1,905-$1,910 will be tested.
Conversely, if gold sellers dominate, the initial support level is anchored at the 21-day SMA at $1,974, with a potential significant decline to $1,960. Gold prices may test the psychological support level of $1,950 if the downward trend persists.
In conclusion, the fluctuations in gold prices underscore the impact of various factors, including currency dynamics and bond market movements, creating a dynamic landscape for traders to navigate.
The 14-day Relative Strength Index (RSI) comfortably remains above the midline, providing support for the upward trend.
The next resistance level is identified at the declining trendline's resistance around $1,992, close to the highest point on November 6 at $1,993. Acceptance above this level will challenge gold buyers to breach the $2,000 mark.
Furthermore, a static resistance zone around $1,905-$1,910 will be tested.
Conversely, if gold sellers dominate, the initial support level is anchored at the 21-day SMA at $1,974, with a potential significant decline to $1,960. Gold prices may test the psychological support level of $1,950 if the downward trend persists.
In conclusion, the fluctuations in gold prices underscore the impact of various factors, including currency dynamics and bond market movements, creating a dynamic landscape for traders to navigate.
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