Gold prices decline on softening
In a significant market shift, gold prices have witnessed a notable downturn as tensions in the Middle East showed signs of abating. Israel's decision to implement a ceasefire for humanitarian purposes, coupled with global leaders' concerted efforts to mediate the conflict, has provided a semblance of stability. Contrastingly, oil prices have found support above the $80 mark, largely attributed to proactive measures by major oil-producing nations. Saudi Arabia and Russia have voluntarily curtailed oil supplies, aiming to bolster oil price stability amid geopolitical uncertainties. Investor focus has now shifted to China, where the keenly anticipated release of the Consumer Price Index (CPI) and Producer Price Index (PPI) holds sway. These indices are crucial barometers, offering insights into China's economic resilience and potential impact on global oil demand.
Gold prices have experienced a retreat, consolidating within a range defined by support and resistance levels,as conflicting fundamental factors leave investors seeking clearer market direction. Global efforts to ease tensions in the Middle East have reduced the appeal of gold as a safe-haven asset. However, the decline in gold's value is somewhat offset by the weakening of the US Dollar, which has followed the retreat in US Treasury yields.
Gold is trading lower following the prior retracement from the resistance level. MACD has illustrated increasing bearish momentum, while RSI is at 38, suggesting the commodity might extend its losses since the RSI stays below the midline.
Resistance level: 1980.00, 2005.00.
Support level: 1960.00, 1940.00.
Gold prices have experienced a retreat, consolidating within a range defined by support and resistance levels,as conflicting fundamental factors leave investors seeking clearer market direction. Global efforts to ease tensions in the Middle East have reduced the appeal of gold as a safe-haven asset. However, the decline in gold's value is somewhat offset by the weakening of the US Dollar, which has followed the retreat in US Treasury yields.
Gold is trading lower following the prior retracement from the resistance level. MACD has illustrated increasing bearish momentum, while RSI is at 38, suggesting the commodity might extend its losses since the RSI stays below the midline.
Resistance level: 1980.00, 2005.00.
Support level: 1960.00, 1940.00.
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