Gold price tumbles as risk taking rises.
“Appeal for safe haven diminishes as market shifts their focus towards other risky assets.”
Gold price hovers at one-month low following rising short-term yields while the market reassess their expectations towards Federal Reserve. The metal failed to recuperate its losses as investors poured into other risky assets. Such phenomena were sparked after Powell reiterates deflation standpoint even after last month’s Nonfarm Payrolls report exceed expectations.
Quick recap on XAUUSD
The metal experienced significant downfall after prior failure to conquer 1960.
XAUUSD Weekly Technical Analysis
A strong bearish close from previous period shows higher possibility for further downside ahead.
XAUUSD Daily Technical Analysis
From daily perspective, the metal is expected to test around 1859, which will determine its trend direction for short to mid-term.
Trading Idea
ORDER: SELL STOP
ENTRY: 1850
STOP LOSS: 1870
Target 1: 1830
Target 2: 1810
ZFX Analyst’s Comment
In the meantime, we will place our focus on 1859 whereby a close below would signify further downside ahead.
—
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!