Since the beginning of November the Gold prices are down
with 8%. The intraday high marked on the US Presidential elections day at
1337 faded away and currently the precious metal is trading at 1172. The
impressive downward slide continued today and provoked bears to test 1160
level.
The latest strengthening of the greenback supported the decline in gold prices
together with the tightening of capital flows out of China.
Technical indicator are showing strong oversold conditions. RSI is placed now
at 21 level and is turning to south. Stochastic is currently displaying extreme
values and is showing lack of momentum.
Meanwhile the price is staying well below the 20-day, 100-day and 200-day
exponential moving averages.
XAU/USD has crossed the key and psychological level at 1170 (61.80% Fibonacci
retracement) and in case of maintaining the downward direction next target
is seen at 1140 (March 2015’a low) and 1120.
Given above technicals the gold prices are poised
to extend slide.
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