Gold price crouches as US dollar hit decades high.
“Stubbornly US inflation drove US dollar to a decade high.”
Gold price slipped towards mid-$1,700 threshold as investors continue to bet upon “hot inflation” in United States. Several series of data shows persistency in inflation as it continues to hover at four-decades high. Global supply chain disruption is left to blame as world’s largest manufacturing powerhouse – China exercised brute lockdown due to zero covid policy. Nonetheless, even as Fed initiated several rounds of rate hike, inflation pressure is too “sticky” to budge down.
Quick recap on XAUUSD
XAUUSD lost its appeal among market participants as it breaches several key levels for the past few weeks.
XAUUSD Weekly Technical Analysis
In weekly perspective, the commodity is clinging to its dear life at 1725.10, one of the minor support before the major threshold at 1681.03.
XAUUSD Daily Technical Analysis
From daily perspective, bearish momentum maintained its position as it tests around 1725.10. Overall outlook is skewed towards the downside due to recent price actions.
Trading Idea
ORDER: SELL STOP
ENTRY: 1718
STOP LOSS: 1733
Target 1: 1700
Target 2: 1685
ZFX Analyst’s Comment
Overall, XAUUSD recent price action signaled possibility for further downside as recent price action lacks bullish momentum. Nonetheless, a confirmation at 1725.10 is required before looking for next target around 1681.03.
—
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.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!