Gold starts the week on a bearish note and awaits inflation data
09 May 2022
The price of gold futures on COMEX is down 1.00% at $1864 per troy ounce on mid – Monday trades.
Gold opened this week on a bearish note, witnessing heavy selling pressures after a turbulent last week, dominated by the Fed’s rate-hike announcement. This week, the global growth fears are back in the spotlight as investors worry that China’s extended COVID-lockdowns and interest rate hikes by central banks would slow down the global economic growth and lead to stagflation.
The benchmark 10-year treasury bonds yield is currently trading at 3.185%, the highest ever since November 2018. The rising yields and a strong greenback will serve as a strong headwind for the non-yielding bullion.
This week the focus will be on the all-important US inflation data due later this Thursday. Gold price, this week, will be at the mercy of the sentiment surrounding the dollar and its yields.
On the technical side, the RSI of COMEX Gold futures stood at 38.33 and is trading below all SMAs: MA (5), MA (20), and MA (50). So, SELL position can be taken with the following target and stop-loss:
TRADE SUGGESTION: COMEX GOLD FUTURES – SELL: 1850, TARGET: 1820, AND STOP-LOSS: 1875