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: