Article by: ETO Markets
The yield on US 10-year bonds fell to 4.16%, the lowest since early September. At the same time, the USD index rose above 104 for multiple days. The greenback's short-term positive momentum is still present, which suggests that gold's future is not looking good. US statistics will continue to be the main focus on Wednesday, especially the ADP Employment Report, in advance of the non-farm payrolls on Friday and the jobless claims on Thursday.
Gold fell to test the support level of $…, which has served as a stop sign for more declines. Should this level be broken, negative pressure would rise, exposing the $… region and the 20-DMA at $... The following targets are $… and $...
There has been a notable decrease in the price of gold, with a decline of more than $… from the peak. Still, several technical indications appear to be indicating further negative potential, even with the readings being oversold. The momentum is still constantly negative. If the price stays over $…, price stabilization may be seen, with $… serving as the initial resistance. Bulls would need to see a price increase above $… to indicate that the short-term technical picture might be improving.
