Gold remains under pressure below $1,900 amid stronger USD
Updated
Brian, hello everyone!
Yesterday, we witnessed a trading session where the price of gold continued to plummet from $1900 to $1874. The strong support level of $1900 was broken, and both the RSI and the gold price traded below the 34 and 89 EMA lines, indicating a downward trend.
In addition, market information reveals that the US dollar's rise in value is not only due to the improving US economy but also because of the high interest rates in the country. The US basic interest rate is currently at its highest level in 22 years, ranging from 5.25% to 5.5%. This directly affects the precious metal.
The current upward movements may only be temporary, and we need to wait for further developments from the Federal Reserve to have a clearer picture of gold's future direction.
Yesterday, we witnessed a trading session where the price of gold continued to plummet from $1900 to $1874. The strong support level of $1900 was broken, and both the RSI and the gold price traded below the 34 and 89 EMA lines, indicating a downward trend.
In addition, market information reveals that the US dollar's rise in value is not only due to the improving US economy but also because of the high interest rates in the country. The US basic interest rate is currently at its highest level in 22 years, ranging from 5.25% to 5.5%. This directly affects the precious metal.
The current upward movements may only be temporary, and we need to wait for further developments from the Federal Reserve to have a clearer picture of gold's future direction.
Note
good luckNote
Capital flows withdrawing from emerging markets (EM) also pushed the USD up.Note
Gold is stopping at 1875 and prices appear to be flat todayNote
The DXY index (measuring the fluctuation of the USD compared to 6 major currencies) continued to increase and reached 106.4 points.Note
gold is down to 1866 usdNote
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