The gold price came close to hitting $1700 in the past 12 hours, as of this writing, the metal trades below $1712. The reason for such significant weakening was created by the substantial strengthening of the US dollar and sharp rise in interest rates around the world, especially the US central bank, which is pursuing an aggressive monetary policy to get inflation under control.
Bullion prices extended their weekly decline as a stronger dollar and higher interest rates continued to hammer investment demand in the precious metals. The precious metal has been under intense selling pressure since Friday after the aggressive speech from Fed Chair Jerome Powell. On Friday, at a speech at the Jackson Hole symposium, Powell said that the US Central Bank will raise and maintain rates at a restrictive level until inflation falls substantially.
What I see from the chart is that gold is in a downward trend, with supply and demand waves most likely moved by economic reports on the USD dollar. The probability of gold bouncing back is low and does not seem to be likely at present.
I haven’t traded gold for a long while but on the weekly.It hitting Strong support Levels and 200 weekly ema after a double top.It hardly a down trend “just” yet but we see.
Yes, you’re correct, as is the 200 EMA monthly chart.
I responded by only looking at the daily chart above. If I was daily trend trading I wouldn’t be buying as the probability of a winning trade is low. .
In my opinion, the price will reach to trong support today, 168x. Then it may bounce off for a short and continue for downward trend. But who knows what will be going next, let wait and see.
