Fundamental Description: Gold was up on Thursday morning in Asia, while U.S. Treasury yields gained. Gold’s response has been quite disappointing, with the FOMC minutes also boosting risk sentiment. Gold cut some dollar strength-driven losses after Wednesday’s Fed minutes suggested the central bank would raise interest rates by 50 basis points in June and July 2022.
Technical view: According to the daily chart, Gold is poised to extend its decline. Gold has retreated below a mildly bearish 20 SMA while it approaches a directionless 200 SMA, offering dynamic support around 1,838.00. Technical indicators, in the meantime, retreat from their midlines, gaining bearish traction within negative levels.
Alternate View: Strong resistance is placed at $1,856, which is the horizontal 21-SMA, above which the hurdle at $1,863 will get tested.
Technical view: According to the daily chart, Gold is poised to extend its decline. Gold has retreated below a mildly bearish 20 SMA while it approaches a directionless 200 SMA, offering dynamic support around 1,838.00. Technical indicators, in the meantime, retreat from their midlines, gaining bearish traction within negative levels.
Alternate View: Strong resistance is placed at $1,856, which is the horizontal 21-SMA, above which the hurdle at $1,863 will get tested.