Gold prices moved lower on Friday breaking down through support levels as a strong dollar offset the selloff in Chinese equities. The dollar continued to
Gold prices moved lower on Friday breaking down through support levels as a strong dollar offset the selloff in Chinese equities. The dollar continued to gain traction against the euro ahead of next week’s ECB meeting in monetary policy. A stronger dollar generates headwinds for Gold as it is priced in dollars and trades as a currency.
Resistance on gold prices is now seen near former support at 1, 063. The next level of target support is 1,048 and then 1,005. Momentum is negative but the recent consolidation has kept the MACD flat. This breakdown in prices should generate additional negative momentum in the days to follow. The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum while printing a reading of 26, which is below the oversold trigger level of 30 and could foreshadow a correction.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.