Recently, gold price suffered great losses after the markets increased bets on a U.S. rate hike in the upcoming months. The US dollar increased sharply after comments from U.S. Federal Reserve officials suggested that the U.S. economy was healthier with the good statistics from labor market. Opening this week, the dollar index DXY, which measures the greenback’s value against a basket of its peers, continued its upbeat from last Friday, rocketed to the level of 94.76 after leaving a fairy big gap-up.
Fig. DXY D1 Technical Chart
In addition, according to the recent report from the Sankei newspaper over the weekend, the Governor Haruhiko Kuroda claimed that more aggressively easing policy which would push the benchmark rate into negative zone would not be ruled out. A gauge of investors have moved their money to a higher returns shelter like the greenback. That helped rally the dollar and put pressure on gold.
Fig. GOLD H1 Technical Chart
On the hourly chart, the “yellow” commodity is recovering slightly after hitting a low of 1331.66 in Asian trading session on this Monday. The correction seems to last for a while as the ADX (14) has fallen but still stays high around the reading of 40. Besides, there is just small distance between the DI- line and DI+ line. RSI (14) stands pat at 41.6627, indicating that the bearish momentum is still on stage. The last candle may be a down one with a long upper shadow, which gives some direction that the sellers are striving to be dominant the opposite site. The price of the precious metal is supposed to fall back soon.
Analyses of Group Fiinvesting
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