Gold trade flats on lack of momentum

COMEX gold futures

The price of COMEX gold futures is up a mere 0.01% at $1840.8 per troy ounce on mid-Monday trades.

Gold price is trading flatly around the $1840-level after witnessing a fall in the previous week.  The recovery in risk sentiment bodes ill for the safe-haven asset.

The upside in gold prices, however, remains capped, as investors remain wary amid the aggressive Fed’s tightening path. The Fed hiked the key policy rates by 75 bps last week while leaving doors open for a 75 bps increase in July, as the world’s central bank remains committed to fighting inflation.

Markets now remain focused on the testimony from ECB President Christine Lagarde for fresh hints on the monetary policy, which could have a significant impact on risk sentiment, which may affect gold dynamics.  Market participants are also awaiting Fed Chair Jerome Powell’s testimony, due later this week.

On the technical side, the RSI of COMEX gold futures stood at 47.21 and is currently trading above MA (5) but below MA (20) and MA (50). So, SELL position can be taken with the following target and stop-loss:

TRADE SIGNAL: COMEX GOLD FUTURES – SELL: 1830, TARGET: 1810, AND STOP-LOSS: 1845

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