Gold Slips Below $1325 Level – Market is still Cautious
Gold surrendered its early gains to $1330 area, or one-week tops, and has now retreated to the lower end of the daily trading range.
A combination of factors, ranging from fading Fed rate hike expectations and the latest White House exits, kept exerting downward pressure on the US Dollar and benefitted dollar-denominated commodities – like gold.
Despite supportive factors, the up-move already seems to have run out of steam and was now being capped by a modest USD rebound. Moreover, a modest rebound in investors’ appetite for riskier assets – like equities was seen denting demand for traditional safe-haven assets and collaborated to the commodity’s retracement slide.
Currently trading around $1322 level, investors now look forward to a duo of US macro releases – monthly retail sales data and the latest PPI figures, for some fresh impetus.
On the technical charts, Gold is trading in the negative zone but above all the moving averages (9 day, 20 day, 50 day, 100 day, and 200 day). The RSI is at 48.91 and the MACD is below the signal line. The market is expected to trade in the negative zone.
Sell stop at 1322, Take profit at 1315, Stop loss at 1330