Article by: ETO Markets
As investors are unable to celebrate the People's Bank of China announcement of a higher-than-expected Loan Prime Rate, risk sentiment is still weak as of this Tuesday. The one-year LPR was not altered by the Chinese central bank, while the five-year mortgage lending rate saw a record 25 basis point drop, from 4.20% to 3.95%. However, the markets are underwhelmed by China's lack of fiscal policy support measures.
On a daily closing basis, the gold price was rejected at the 20-DMA, which is currently at $…, which revived the selling interest. However, before targeting the 100-DMA at $… and the rising trendline support at $…, gold sellers must break through the low of the previous day, which was $….
To resume the upward movement toward the 50-DMA of $…, the 20-DMA of $… serves as the immediate obstacle that must be overcome. If that level is accepted, new buying opportunities in the gold market will arise, with the goal of reaching the psychological barrier of $… and the high of $… on February 7.
