Gold Price Analysis: Gold Needs To Crack $1722

Gold Price Analysis: Gold (yellow metal) has stalled its rebound and turns south once again, undermined by broad-based US dollar strength, as markets seek safety in the greenback amid fears of overheating and Turkey’s abrupt sacking of the central bank Chief.

Gold Price Analysis

Although the gold buyers remain hopeful amid falling US Treasury yields, which make the non-yielding gold relatively attractive. The benchmark US 10-year rates shed 3.30% so far, back under the 1.70% level.

Gold’s fate hinges on the Fed Chair Jerome Powell’s speech due later in the session ahead. However, the bright metal risks further falls if the risk-aversion deepens in European trading and refuels the haven demand for the buck.

Gold Price Analysis: From a near-term technical perspective, gold is on the verge of confirming a rising wedge breakdown if the price closes the four-hour candlestick below the $1737 support. The bears will then test the bullish 50-simple moving average (SMA) at $1730, below which the 100-SMA at $1722 could be challenged.

Acceptance below the latter is needed to extend the downside towards the previous month low of $1717. The Relative Strength Index (RSI) points south while trading currently at 48.99, suggesting that the spot is poised for more losses.

On the flip side, if the 100-SMA support holds, a move back towards the pattern support now resistance at $1737 would not be ruled. Further up, the daily high of $1747 could be next on the buyers’ radar, as they eye a sustained break above the $1750 psychological level.

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