Fundamental Descriptions: A strengthening dollar and rising U.S. Treasury yields impacted demand for the U.S. currency-priced yellow metal, which is set for a second consecutive monthly loss for the first time since March 2021. Gold prices will be influenced by the direction of U.S. Treasury yields and the U.S. Dollar. Higher yields lower the appeal of zero-yielding gold, while a stronger U.S. Dollar makes the greenback more expensive for the holders of foreign currencies. Although last week’s economic data for April signaled the economy is still strong, traders are still not sure if this trend will continue after the 50 basis point rate hike in May, and expectations of similar moves in June and July. This suggests heightened volatility could be the norm over the near-term.
Technical View: Gold Price tested the bearish Moving Average , now at $1,849, with bears eyeing a decisive break below the latter to extend the ongoing downbeat momentum. The 14-day Relative Strength Index (RSI) is inching below the midline, allowing room for more declines.
Alternate View: Recapturing the daily highs of $1,857 is critical to take on the upside towards the previous day’s high of $1,864.
Technical View: Gold Price tested the bearish Moving Average , now at $1,849, with bears eyeing a decisive break below the latter to extend the ongoing downbeat momentum. The 14-day Relative Strength Index (RSI) is inching below the midline, allowing room for more declines.
Alternate View: Recapturing the daily highs of $1,857 is critical to take on the upside towards the previous day’s high of $1,864.