Home · Business · Sep 25 archive
Gold Prices Under Pressure Below $4,300
Confirmed
In Short: Gold prices are trading just below the $4,300 level on Friday, having bounced from support in the $4,230 area. According to OCBC strategists Sim Moh Siong and Christopher Wong, gold remains under near-term pressure after briefly slipping below $4,250 before rebounding modestly.
Gold prices are trading just below the $4,300 level on Friday, having bounced from support in the $4,230 area. According to OCBC strategists Sim Moh Siong and Christopher Wong, gold remains under near-term pressure after briefly slipping below $4,250 before rebounding modestly.
Higher oil prices, firm US data, and hawkish Federal Reserve comments have reinforced rate-hike expectations, supporting the US Dollar and further gains in yields. This could keep the bearish bias intact for gold, while softer energy prices or a weaker US Dollar may help stabilize the precious metal.
Gold is currently seen at $4,275 levels, with the immediate area of resistance at $4,300 to $4,354, which includes the 21, 50, and 100-day moving averages. Persistent price pressure below this area could see bearish pressure reassert itself.
Analysts note that mild bearish momentum on the daily chart is intact, with the Relative Strength Index (RSI) flat. A range-bound trade is not ruled out, but any reclaiming of key short-term levels could signal a shift.
Gold's price remains supported by breaching a short-term bearish corrective trendline, while positive pressure continues as it trades above the 50-day Exponential Moving Average (EMA), which is acting as dynamic support and reinforcing the chances of a near-term recovery.
Meanwhile, EUR/USD is experiencing fluctuating trading below the key resistance at 1.1490, signaling the continuation of negative pressure on the pair amid the dominance of the short-term bearish corrective trend.
Negative signals are beginning to emerge from the relative strength indicators after forming a bearish divergence, intensifying the negative pressure on the pair and signaling a potential resumption of its decline in the near term.
What's confirmed
- Gold prices are trading just below the $4,300 level on Friday, having bounced from support in the $4,230 area. According to OCBC strategists Sim Moh Siong and Christopher Wong, gold remains under near-term pressure after briefly slipping below $4,250 before rebounding modestly.
- Higher oil prices, firm US data, and hawkish Federal Reserve comments have reinforced rate-hike expectations, supporting the US Dollar and further gains in yields. This could keep the bearish bias intact for gold, while softer energy prices or a weaker US Dollar may help stabilize the precious metal.
- Gold is currently seen at $4,275 levels, with the immediate area of resistance at $4,300 to $4,354, which includes the 21, 50, and 100-day moving averages. Persistent price pressure below this area could see bearish pressure reassert itself.
- Analysts note that mild bearish momentum on the daily chart is intact, with the Relative Strength Index (RSI) flat. A range-bound trade is not ruled out, but any reclaiming of key short-term levels could signal a shift.
- Gold's price remains supported by breaching a short-term bearish corrective trendline, while positive pressure continues as it trades above the 50-day Exponential Moving Average (EMA), which is acting as dynamic support and reinforcing the chances of a near-term recovery.
- Meanwhile, EUR/USD is experiencing fluctuating trading below the key resistance at 1.1490, signaling the continuation of negative pressure on the pair amid the dominance of the short-term bearish corrective trend.
- Negative signals are beginning to emerge from the relative strength indicators after forming a bearish divergence, intensifying the negative pressure on the pair and signaling a potential resumption of its decline in the near term.
What's still developing
- AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight.
- EURGBP price ended its bullish corrective rebound after facing the resistance extending toward 0.8605, stabilizing below it and maintaining its position within the boundaries of the bearish channel shown on the accompanying chart, as it currently slips toward 0.8577.