Gold testing $1700 support
The strength of US dollar caused the EUR/USD break below parity today and sent gold tumbling to $1700. But the metal managed a small bounce off its lows as recession concerns supported Treasurys, causing the yield on the 10-year to remain below 3%.
If gold has any chance of a comeback we now need to see the dollar fall back. Right now, expectations are rising about short term interest rate hikes, owing to surging inflationary pressures. This is something that is holding gold back.
Gold remains stuck inside a well-established bearish channel. It needs to climb above Wednesday's high at $1745 to trigger a potential short-covering rally towards the resistance trend of the channel.
Otherwise, watch out below!
If gold has any chance of a comeback we now need to see the dollar fall back. Right now, expectations are rising about short term interest rate hikes, owing to surging inflationary pressures. This is something that is holding gold back.
Gold remains stuck inside a well-established bearish channel. It needs to climb above Wednesday's high at $1745 to trigger a potential short-covering rally towards the resistance trend of the channel.
Otherwise, watch out below!
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