Gold Slips Under $1,750 – Quick Update on Sell Trading Signal
Gold has opened flat and is straddling the $1,751 mark, having lately been pressured by the US Dollar, which has posted its greatest weekly gain in over a month as investors monitor rising bond yields and continue to bet on the US Federal Reserve’s interest rate hike path.
The US Dollar index DXY, which tracks the dollar against a basket of international currencies, was up 0.0.3% at 106.93, recouping losses from the previous week, when US inflation data caused the index’s steepest weekly drop since March 2020. On Friday, Treasury yields rose for the second day in a row, with the 10-year yield closing at 3.821%.
This week, US retail sales numbers that were better than expected made it hard to believe that interest rate hikes would slow down. Also, hawkish comments from Fed officials like James Bullard helped ease fears that the Fed would soon raise the US dollar and interest rates.
The Fed minutes will offer insight into the FOMC’s deliberations regarding the predicted slowdown in rate rises in the next week. However, officials will highlight that the terminal rate is expected to rise above previous predictions if the labor market remains extremely tight. In terms of data, analysts at TD Securities expect the manufacturing PMI to fall slightly but remain over 50 in November.
Gold Technical Outlook
Gold price attempted to break the neckline of the head and shoulders pattern that appears on the chart and finds solid support there, waiting for new negative trades to head towards our expected targets that begin at $1,746.40 and extend to $1,721.65 to maintain our bearish outlook for today unless it breaches and holds above $1,765. Today’s trading range is likely between $1,740 support and $1,780 resistance.
The expected trend for today: Bearish
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