GOLD (XAU/USD) ANALYSIS, PRICE AND CHART
US Treasury yields will continue to grind higher.
Daily golden chart throwing out some intriguing signals.
The price of gold is finding it hard to split a documented area of resistance and it's looking increasingly probable that support levels may be examined in the short- to medium-term. The precious metal is picking up a small bid of overdue as US tech stocks come under pressure, although US Treasury yields continue to go higher, gold will have difficulty testing recent highs. The return on the US 10-year touched 1.75percent on Thursday, its greatest level since January 2020, before fading to just below 1.70percent today. The latest FOMC meeting re-affirmed the central bank will stay accommodative until unemployment goes towards 5% or reduced and that interest rates will probably remain unchanged through 2023. The bond market however has a slightly different perspective and yields appear likely to grow further, and test the Fed, at the coming weeks and months.
Taking a look at the daily chart, Thursday's candle only missed forming a'bearish engulfing' pattern, a drawback set-up and one that indicate lower prices ahead. The pattern could have been confirmed in case Thursday's candle closed ($1,735/oz.) Under Wednesday's open ($1,731.5/ounce ) .
(Thursday's high), prior to the March high at $1,761/oz. Along with the 50% Fibonacci retracement level at $1,764.6/oz. In the current environment, gold may struggle to break these levels . The precious metal is back over the 20-day simple moving average, a sign that has acted as immunity since early 2021 and when this remains the case, then a trading range will probably force a more volatile breakout.
Client sentiment data show 84.07% of traders are net-long using the proportion of traders extended to brief at 5.28 to 1. We typically have a contrarian perspective to crowd sentiment, and also the truth traders are net-long suggests Gold costs will continue to fall.Traders are further net-long than yesterday and last week, and the blend of current belief and recent changes gives us a more powerful Gold-bearish contrarian trading bias.