Fundamental Descriptions: Gold was up on Tuesday over the weakening dollar. Investors now await inflation data. The precious metal has become more precious as a rebound in the positive market sentiment has trimmed the US dollar index safe-haven appeal. Worries over the impact of the Chinese covid curbs on the world’s no. 2 economy aggravated after the country reported trade surplus at two-year lows. Meanwhile, the Fed’s outlook on monetary policy normalization combined with the Ukraine crisis-led surging inflation continued to add to the gravitational forces around the Gold Price, as the greenback’s safe-haven appeal remained underpinned.
Technical View: The 200-SMA at $1,880 will be the level to beat for gold bulls should the recovery momentum continue. The Relative Strength Index (RSI) has turned flat below the midline, suggesting that the rebound could be losing steam.
Alternate Scenario: If sellers return, then the immediate downside target is seen at the previous day’s low of $1,852, below which the psychological $1,850 level. A fresh downswing will be initiated on a sustained move below the latter, opening floors towards the critical $1,835 demand area.
Technical View: The 200-SMA at $1,880 will be the level to beat for gold bulls should the recovery momentum continue. The Relative Strength Index (RSI) has turned flat below the midline, suggesting that the rebound could be losing steam.
Alternate Scenario: If sellers return, then the immediate downside target is seen at the previous day’s low of $1,852, below which the psychological $1,850 level. A fresh downswing will be initiated on a sustained move below the latter, opening floors towards the critical $1,835 demand area.