Gold Slammed by These Two Factors!
Gold remains under pressure as the market continues to reset after a too-rapid rally. The main fundamental drivers are a strengthening US dollar and expectations of tighter Federal Reserve policy following Kevin Warsh's nomination, making gold (which does not yield) less attractive. This is compounded by profit-taking, deleveraging, and increasing selling pressure.
The next focus is on US data, especially the NFP. If the NFP is strong, the dollar/yield could remain high, making it difficult for gold to rebound. If the NFP weakens, a rebound opportunity opens up as the dollar/yield could cool. (asd)
The gold price at the time of this analysis was $4,641
- Buy if the price is at $4,705
- Sell if the price is at $4,606
Resistance 2: $4,865
Resistance 1: $4,766
Support 1: $4,568
Support 2: $4,469
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id