Gold falls below the $1800 – level during Monday trades

Gold futures

Gold futures at COMEX is down at 0.48% at $ 1815.7 on mid-Monday trades.

Gold opened this week on a bearish note after witnessing a plunge of nearly 4%. The price is currently trading below the $1800 – level and is nearing this year’s low of $1780 attained at the end of January this year.

Gold price weekend below the $1800 – level on mid-Monday trades as a sign of stability in the financial market undermined demand for the safe-haven metal. Additionally, the Fed’s prospects for a more aggressive policy tightening further contributed to the yellow metals fall.

The gold price has fallen to its lowest in three and half months as elevated bond yields and a strong dollar dampened bullion demand. A stronger dollar makes gold, and other commodities denominated in dollars, expensive for the overseas buyers while the rising treasury yields raise the opportunity cost of holding non-yielding bullion.

On the technical side, the RSI of COMEX gold futures stood at 29.51 and is currently trading below all SMAs: MA (5), MA (20), and MA (50). So, the SELL position can be taken with the following target and stop-loss:

TRADE SUGGESTION: CHICAGO GOLD FUTURES – SELL: 1780, TARGET: 1760, AND STOP-LOSS: 1810

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