Below $2,030, gold remains bearish, and US debt ceiling talks are being considered
FUNDAMENTAL OVERVIEW
As conflicting emotion permits the US Dollar to remain firmer, the gold price (XAU/USD) prints a three-day downturn to recall the bears after their fortnight-long retreat.
As conflicting emotion permits the US Dollar to remain firmer, the gold price (XAU/USD) prints a three-day downturn to recall the bears after their fortnight-long retreat. Fears about the US debt ceiling expiring after officials postponed the eagerly anticipated meetings of Friday to early next week may strengthen the bearish sentiment for XAU/USD. Concerns of an economic downturn due to a decline in US bank deposits are related.
It should be highlighted, however, that the confidence of US officials and the hopes for a resurgence in China’s inflation challenge the gold bears before more indications of US inflation, which can support the most recent hawkish Fed concerns. In addition to US inflation signals, it will be crucial to monitor US retail sales the next week and a speech from Federal Reserve (Fed) Chairman Jerome Powell for short-term changes in the price of gold.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
Gold is currently trading in down channel.
Gold is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
Gold resistance is at 2014.87 & its immediate support level is 2005.99
HOW TO TRADE GOLD
The price of gold is now trading at a critical support level and is moving downward in a channel; if this level of support is broken, gold will continue to decline.
