Fundamental Descriptions:
Gold was up on Friday, as worrying U.S. GDP data drove some investors towards the safe-haven asset. However, the yellow metal is set for its biggest monthly drop since September 2021 as the U.S. Federal Reserve widely expected to aggressively hike interest rates. Month-end flows combined with profit-taking have triggered a sharp correction in the US dollar against its major rivals, aiding Gold Price to recover sizeable ground above the $1,900 mark. The dollar, which normally moves inversely to gold, was down on Friday but steadied off the 20-year high it reached against rival currencies during the previous session.
Technical View:
As of writing, gold is trading below 1920, which is our previous S2, now acting as a resistance. Any further upside may lead it to the level of 1925.
Alternate Scenario: Break below 1907, may confirm bearish sentiment in gold during the session.
Gold was up on Friday, as worrying U.S. GDP data drove some investors towards the safe-haven asset. However, the yellow metal is set for its biggest monthly drop since September 2021 as the U.S. Federal Reserve widely expected to aggressively hike interest rates. Month-end flows combined with profit-taking have triggered a sharp correction in the US dollar against its major rivals, aiding Gold Price to recover sizeable ground above the $1,900 mark. The dollar, which normally moves inversely to gold, was down on Friday but steadied off the 20-year high it reached against rival currencies during the previous session.
Technical View:
As of writing, gold is trading below 1920, which is our previous S2, now acting as a resistance. Any further upside may lead it to the level of 1925.
Alternate Scenario: Break below 1907, may confirm bearish sentiment in gold during the session.