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
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.
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.