Gold – Bulls putting up another fight

Gold threatening more lows

Gold is trading back near its recent lows and looking vulnerable on Friday.

Recent gains in the dollar have further weighed on the yellow metal, with this week’s assessment from the Federal Reserve not quite dovish enough to satisfy the gold bulls that are still hanging on.

US Dollar Index

Source – Thomson Reuters Eikon

It is worth noting that momentum may be fading in the decline, something that was evident when it hit the lows last week as well, which makes the area around $1,260 all the more interesting.

Gold Daily Chart

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A break below here may bring some of that momentum flowing back, although continued declining momentum into it may strongly indicate that there’s not yet the appetite there to see gold breach these levels. Of course, if the dollar is going to continue to outperform on the upside, the gold bulls may be fighting against the tide.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.