Gold starts the week on a bearish note and awaits inflation data

gold futures

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

About Author

Related posts

wheat news

Wheat continues its downtrend, declining around 10% from its recent high

The price of Chicago Wheat futures is down 0.33% at $11.4 per bushel on mid-Friday trades. Wheat started the week with mild bullish pressure, gaining around 1.80% on Monday. Prices, however, fell on the two subsequent days, i.e., on Tuesday and Thursday. This decline is a resumption of the...

Read More
European stock markets

European Stocks Largely Higher; U.K. Market Underperforms

CAC 40 is trading up 0.90% at 6468.31 European stock markets largely edged higher Friday, with the energy-heavy U.K. market underperforming, in cautious trading ahead of the release of key U.S. inflation data. By 4:05 AM ET (0805 GMT), the DAX in Germany traded 0.4% higher, the CAC 40...

Read More
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

Leave a Reply