Gold Price Slips Lower As Dollar strengthen – Outlook Cautious
Gold prices slipped lower on Monday, pulling away from a three-and-a-half week high as the U.S. dollar remained supported by Friday’s strong U.S. housing sector data.
Gold prices were down 0.37% at $1,351.1 a troy ounce by 06:10 GMT, off Friday’s three-and-a-half-week peak of $1,364.4.
The dollar was supported after the U.S. Commerce Department reported on Wednesday that consumer prices raised more than expected in January by 0.5%, sending U.S. bond yields higher.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 89.06.
On the technical charts, Gold is trading sideways and is above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 57.59. Currently, the MACD is above the signal line.
Sell stop at 1344, take profit at 1340, stop loss at 1347