Article by: ETO Markets
As investors evaluate the contradictory signals from US Federal Reserve policymakers and their implications for pricing the dovish policy turn this year, the market sentiment is still mixed as of Thursday's trade. In light of the robust US Nonfarm Payrolls and Consumer Price Index data for January, as well as the uncertainty around the timing of Fed interest rate decreases, the US dollar and US Treasury bond yields remain in a corrective mode.
Traders who are bearish should hold off on taking any more losses until they see acceptance below the 100-SMA. The price of gold might possibly accelerate its decline towards the crucial 200-DMA support, which is currently anchored around the $… region, given that oscillators on the daily chart are holding firmly in the negative sector. In order to reach the November 2023 low, which is located near $…, a strong break below the latter should open the door for additional depreciation towards an intermediate support around ….
Alternatively, it appears that any effort at a rebound above $… will face strong opposition near $… region. However, some further purchasing that pushes the price of gold above $… and prompts a short-covering rebound might push the metal to the 50-DMA, which is presently around $….
