Gold bulls hit hard! Spot gold prices plummeted, falling below 1745. Latest gold technical analysis: Gold prices may fall another $15.
Early Friday (April 9) European morning trading, spot gold suddenly plunged, hitting a low of $1743.85 per ounce, falling nearly $15 from its intraday high. Currently, gold is trading around $1745 per ounce. Mehta pointed out that after falling from a five-week high, gold is expected to retest the support level of $1730 per ounce. However, technical indicators still support the reason for gold's future rebound. The 50-day moving average of $1760 is the level that gold bulls need to overcome. Supported by a weaker dollar, gold prices rose sharply on Thursday. Spot gold closed at $1755.84 per ounce on Thursday, up $18.11 or 1.04%, hitting a high of $1758.76 per ounce during the session. However, as the US dollar index rebounded, gold prices failed to continue their upward trend on Friday. The US dollar index rose to as high as 92.33 on Friday. Mehta wrote: "Spot gold fell again on Friday after failing to break through the key level of $1760 per ounce for the second consecutive trading day." Technically, Mehta pointed out that the $1760 per ounce level is also where the 50-day moving average (DMA) is located. Currently, sellers have regained control, and gold prices face the risk of testing the 21-day moving average of $1731 per ounce. However, as the 14-day relative strength index (RSI) is still defending the midline, the decline in gold prices seems to be limited by the above-mentioned 21-day moving average support level. Mehta said that if gold prices fall below $1731 per ounce, the April 5 low of $1721 per ounce may be tested. If it falls below this level again, the focus will shift to $1706 per ounce. Mehta added that, on the other hand, if the daily closing price of gold breaks through the 50-day moving average resistance, the double-bottom reversal of gold may regain momentum. In this case, the possibility of gold rebounding towards the $1800 per ounce mark cannot be ruled out. Analysts pointed out that the Federal Reserve's current loose stance may help gold prices rebound in the future. On Thursday local time, Federal Reserve Chairman Powell spoke at a panel discussion at the International Monetary Fund (IMF). Powell reiterated the need to maintain support for the economy, saying the Fed would remain supportive until it was no longer needed. Powell said that the outlook for the US economy has brightened due to fiscal support and vaccinations. However, Powell also pointed out that the slowdown in global vaccination rates and the recent increase in COVID-19 infections in the United States pose risks to recent progress, and he expects the increase in COVID-19 cases to slow economic recovery. Powell said: "The economic recovery is still uneven and incomplete, and global economic activity will not fully recover until the virus is controlled everywhere." The minutes of the Fed's March meeting released on Wednesday showed that policymakers expect that "it may take some time for employment and inflation to make substantial progress toward the Fed's goals." The latest forecast shows that the Fed does not intend to raise its near-zero benchmark interest rate before the end of 2023.
Time:
2021-04-09 16:35
Early Friday (April 9) European morning session, spot gold suddenly experienced a sharp drop, falling to as low as 1743.85 US dollar /oz, retracing nearly $15 from the intraday high. Currently, gold price is trading around $1745/oz. FXStreet analyst Dhwani Mehta's latest article on Friday analyzes the gold price trend.
Mehta pointed out that after falling from a five-week high, gold is expected to retest the support level of $1730/oz. However, technical indicators still support the reasons for gold's future rebound. The 50-day moving average of $1760 is the level that gold bulls need to overcome.
Buoyed by a weaker dollar, gold prices rose sharply on Thursday. Spot gold closed at $1755.84/oz on Thursday, up $18.11 or 1.04%, reaching a high of $1758.76/oz during the session.
However, with the US dollar index rebounding, gold prices failed to continue their upward trend on Friday. The US dollar index rose to as high as 92.33 on Friday.
Mehta wrote: "Spot gold fell on Friday after failing to break through the key level of $1760/oz for a second consecutive trading day."
From a technical perspective, Mehta pointed out that the $1760/oz level is also where the 50-day moving average (DMA) is located. Currently, sellers have regained control, and gold prices risk testing the 21-day moving average of $1731/oz. However, as the 14-day relative strength index (RSI) is still defending the midline, the downward trend of gold prices seems to be limited by the above-mentioned 21-day moving average support level.
Mehta said that if gold prices fall below $1731/oz, the April 5 low of $1721/oz may be tested. If it falls below this level again, the focus will shift to $1706/oz.
Mehta added that, on the other hand, if the daily closing price of gold breaks through the 50-day moving average resistance, the double-bottom reversal of gold may regain momentum. In this case, the possibility of gold rebounding towards the $1800/oz mark cannot be ruled out.
Analysts pointed out that, the Federal Reserve currently maintains a loose stance, which may help gold prices rebound in the future.
On Thursday local time, Federal Reserve Chairman Powell spoke at a panel discussion at the International Monetary Fund (IMF). Powell reiterated the need to maintain economic support, saying the Fed would remain supportive until it was no longer needed.
Powell said that due to fiscal support and vaccine rollout, the outlook for the US economy has brightened. However, Powell also pointed out that the slowdown in global vaccination rates and the recent increase in COVID-19 infections in the United States pose risks to recent progress, and he expects the increase in COVID-19 cases to slow economic recovery.
Powell said: "The economic recovery remains uneven and incomplete, and global economic activity will only fully recover after the virus is controlled everywhere."
The minutes of the Fed's March meeting released on Wednesday showed that policymakers expect that "it may take some time for employment and inflation to make substantial progress toward the Fed's goals." The latest forecast shows that the Fed does not intend to raise its near-zero benchmark interest rates 。
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