Gold Near Monthly Low Despite USD Strength
23 May 2023
Despite moderate US Dollar strength, gold remains near its monthly low.
During the early European session on Tuesday, the price of gold declines back to its lowest point since early April while under some selling pressure for the second straight day.
During the early European session on Tuesday, the price of gold declines back to its lowest point since early April while under some selling pressure for the second straight day. The XAU/USD is currently under pressure from a slight US Dollar (USD) strength as it trades in the $1,960 region, down more than 0.60% for the day.
Gold’s price is impacted by the US dollar’s modest increase.
The US Dollar Index (DXY), which measures the value of the dollar relative to a basket of currencies, is perceived as pulling flows away from the US Dollar-denominated gold price as it maintains stability just below a two-month peak reached last week. Several Federal Reserve (Fed) officials made hawkish comments overnight, which confirmed market predictions that the US central bank will keep raising interest rates. James Bullard, president of the St. Louis Federal Reserve, stated on Monday that the Federal Reserve may yet need to increase its benchmark interest rate by one-half point this year. Neel Kashkari, president of the Minneapolis Fed, added that he was unsure whether he would vote to increase interest rates or to stop the central bank’s tightening cycle when it meets next month.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Gold is trading in the down channel.
Gold is currently trading below all SMA.
RSI is in the selling zone which suggests bearishness and Stochastic suggests no trend.
Gold resistance is at 1973.04 & its immediate support level is 1957.63
HOW TO TRADE GOLD
Gold began to reverse and go down after making a strong upward move. The price of gold is currently hovering near a crucial support level; if this level is broken, then we might anticipate higher gold prices.