Gold price walking on a fine line between bulls and bears.
“Pressure on gold price continues as traders expect Fed to raise interest rates extensively.”
Gold price extended its recent decline while currently testing key support level due to hawkish expectation towards the Federal Reserve. Yesterday, US Producer Price Index for the month of August hovers near 40-years high that may force Federal Reserve to increase interest rates further. As Fed may maintain their hawkish tilt, this raises the opportunity cost for holding gold – a non-interest-bearing asset when compared to greenback.
Quick recap on XAUUSD
Overall trend of XAUUSD is tilted towards the downside as it remains subjected by the 200-MA line.
XAUUSD Weekly Technical Analysis
From weekly perspective, XAUUSD is currently testing at key support level (1695) which coincides with 200-MA line.
XAUUSD Daily Technical Analysis
Evidently, XAUUSD remains subjected by strong selling pressure as recent recovery was short lived.
ORDER: SELL STOP
STOP LOSS: 1715
Target 1: 1655
Target 2: 1635
ZFX Analyst’s Comment
While gold’s price is skewed towards the downside, we require a successful close below 1695 to attain further confirmation towards such bias.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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