Gold prices fell as investors weigh on rate hikes

Gold price

Gold price, at COMEX, is down 1.25% at $1910.2 per troy ounce on early Monday trades, continuing its previous week’s decline.

Gold price retraced from the $2,000 – psychological mark last week and witnessed follow-through selling for the third consecutive day on Monday. While gold prices declined, the U.S. dollar is testing new highs against a broad basket of securities.

Gold prices are under pressure as the Fed is expected to aggressively tackle inflation. Fed chair Jerome Powell all but confirmed a 50-bps rate hike at the upcoming policy meeting on May 3-4 and also hinted at consecutive increases this year. The prospects for a more aggressive policy tightening by the Fed turned out to be a key factor driving flows away from the non-yielding yellow metal.

On the technical side, the RSI of Chicago gold futures stood at 40.89 and is currently trading below all SMAs: MA (5), MA (20), and MA (50). So, SELL position can be taken with the following target and stop-loss:


About Author

Related posts

Copper futures

Copper retreats for the third consecutive day over fears of recession

The price of Copper futures at COMEX is down 0.61% at $4.2285 per pound on mid-Thursday trades. Although copper opened the week on a bullish note, gaining around 1.60% on Monday, the price fell on Tuesday and Wednesday, declining around 2.00%, erasing the gains of Monday. Copper COMEX futures...

Read More
Dollar Index

Dollar edges back towards one-month low

Dollar Index is trading down 0.22% at 101.75 The U.S. dollar edged back towards a one-month low on Thursday, as minutes from the Federal Reserve’s May meeting contained few surprises, with most participants favouring additional 50 basis point rate hikes at the June and July meetings. The dollar index,...

Read More

Leave a Reply