Gold price kicks off the week on a bearish note after facing rejection again near $3,350.
US Dollar finds fresh haven demand amid renewed trade jitters as Trump’s tariff letter to go out on Monday.
Gold price breaches the 50-day SMA support as the daily RSI pierces below the midline.
Gold price is trading close to the $3,300 mark early Monday in a bearish start to a new week, having gained roughly 2% last week.
Gold price has resumed its retreat from the weekly high of $3,366 on account of the reviving safe-haven demand for the USD amid US President Trump’s latest tariff concerns-led risk aversion.Markets remain unnerved as Trump’s July 9 trade deal deadline approaches and his tariff letters are going to be sent to 12 countries this Monday for those who haven’t struck a trade deal with the US.
The US President in April announced a 10% base tariff rate on most countries and higher “reciprocal” rates ranging up to 50%, with an original deadline of this Wednesday.His latest warning of charging 10% additional tariffs on nations aligned with BRICS is sending jitters across the markets, leaving investors on the edge and scurrying to the safe-haven currency, the Greenback.
Meanwhile, the non-yielding Gold price is also reeling from the pain of a strong US employment report, which squashed hopes for aggressive Fed easing.
Data on Thursday showed that the headline Nonfarm Payrolls rose by 147,000 in June, against expectations of a 110,000 increase and the previous revision of 144,000. The Unemployment Rate unexpectedly dropped to 4.1% last month versus 4.3% expected and May’s 4.2%.
Looking ahead, Gold price will likely remain at the mercy of the tariff headlines and their impact on the USD price action.Meanwhile, traders remain expectant of the Minutes of the Fed’s June meeting on Wednesday for more clarity on the timing of the next interest rate cut.
Daily technical analysis
Having faced rejection above the 21-day SMA once again at $3,350, Gold price has breached the 50-day SMA support at $3,321.The 14-day RSI is pointing lower below the midline, currently near 47, suggesting that more downside is opening up for the GOLD.
Sellers need a daily candlestick close below the 50-day SMA to flex their muscles toward the 38.2% Fibo level of the April record rally at $3,297.A sustained move below the latter will target the monthly low of $3,248.
On the flip side, recapturing the 21-day SMA is critical to reviving the recovery from five-week lows.Further up, the 23.6% Fibo level of the same advance at $3,377 could act as a tough nut to crack once again.The next topside hurdle is seen at the $3,400 threshold.
GOLD focuses on daily close and tariff updates
Gold price is trading close to the $3,300 mark early Monday in a bearish start to a new week, having gained roughly 2% last week.
Gold price has resumed its retreat from the weekly high of $3,366 on account of the reviving safe-haven demand for the USD amid US President Trump’s latest tariff concerns-led risk aversion.Markets remain unnerved as Trump’s July 9 trade deal deadline approaches and his tariff letters are going to be sent to 12 countries this Monday for those who haven’t struck a trade deal with the US.
The US President in April announced a 10% base tariff rate on most countries and higher “reciprocal” rates ranging up to 50%, with an original deadline of this Wednesday.His latest warning of charging 10% additional tariffs on nations aligned with BRICS is sending jitters across the markets, leaving investors on the edge and scurrying to the safe-haven currency, the Greenback.
Meanwhile, the non-yielding Gold price is also reeling from the pain of a strong US employment report, which squashed hopes for aggressive Fed easing.
Data on Thursday showed that the headline Nonfarm Payrolls rose by 147,000 in June, against expectations of a 110,000 increase and the previous revision of 144,000. The Unemployment Rate unexpectedly dropped to 4.1% last month versus 4.3% expected and May’s 4.2%.
Looking ahead, Gold price will likely remain at the mercy of the tariff headlines and their impact on the USD price action.Meanwhile, traders remain expectant of the Minutes of the Fed’s June meeting on Wednesday for more clarity on the timing of the next interest rate cut.
Daily technical analysis
Having faced rejection above the 21-day SMA once again at $3,350, Gold price has breached the 50-day SMA support at $3,321.The 14-day RSI is pointing lower below the midline, currently near 47, suggesting that more downside is opening up for the GOLD.
Sellers need a daily candlestick close below the 50-day SMA to flex their muscles toward the 38.2% Fibo level of the April record rally at $3,297.A sustained move below the latter will target the monthly low of $3,248.
On the flip side, recapturing the 21-day SMA is critical to reviving the recovery from five-week lows.Further up, the 23.6% Fibo level of the same advance at $3,377 could act as a tough nut to crack once again.The next topside hurdle is seen at the $3,400 threshold.
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