Gold moves Lower as Market Tension Eases a Bit

The price of spot gold (XAU/USD) moved lower as investor mood cautiously improved this morning. We did see Treasury yields move higher as well. The US Dollar also moved a tad higher as the Fed funds rate outlook improved. This could be bad news for non-interest fiats like gold.

On today’s economic calendar, things are rather void of major announcements. This means we could swing to and from risk on and risk off today rather easily. US stock futures are currently flat as they wait on more political drama to unfold out of Washington DC. This will mean a treacherous trading environment for gold traders as we end the week.

gold chart

Gold Technical Analysis

Using the above MT 4 let’s look at today’s daily technical analysis for the yellow metal. The yellow bullion continues to fall back from 1256.75 to 1263.88 cluster zone. This zone has either been support or resistance for three months. A daily close below the first layer of technical support at 1235.90, challenges the next downside barrier lining up at the trend line at $1,218.12 per ounce.

The alternative daily technical analysis notes the first upside barrier lining up at 1263.88. A break above this first layer of technical resistance challenges the next upside barrier that lines up at $1,280.21. This is the downward sloping trend line that has capped gains for ten months.

David Frank

David Frank

Chief Market Strategist at CupO'Forex
David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.
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David Frank
David Frank