Gold price has paused its two-day downtrend early Friday, eyeing a weekly gain.
The US Dollar attempts a tepid bounce as markets turn cautious amid raging Thailand-Cambodia conflict.
Gold price breached the key 23.6% Fibo support at $3,377 but downside appears capped amid a bullish RSI.
Gold price is licking its wounds below $3,400 early Friday, having bounced off the $3,350 psychological mark. Despite the recent pullback from five-week highs, Gold price remains on track to book a weekly gain.
Markets have turned a bit in Friday’s Asian trading, assessing the gravity of the ongoing military conflict between Thailand and Cambodia.Both Asian nations have requested the United Nations Security Council to call an emergency meeting on Friday, according to China’s CCTV News.
Investors remain worried that the clash between these two countries does not translate into a wider regional conflict.Risk-off flows revive the haven demand for both the US Dollar and Gold price, fuelling a bounce in the former while capping the latter’s downside.
Additionally, markets remain wary ahead of next week’s crucial US Fed and the Bank of Japan monetary policy decisions.
Hence, a short-covering recovery in Gold price cannot be ruled out as the USD heads for the biggest weekly drop on easing trade tensions.
US trade deals with Japan, Indonesia and Philippines, as well as, some progress on the US and European Union trade negotiations have helped ebb fears over a potential tariff war restarting as the August 1 deadline nears.
Besides, the mid-tier US Durable Goods Orders data could keep traders entertained heading into the weekend.
Daily technical analysis
Gold price extended the downside on Thursday and settled below the 23.6% Fibo level of the April record rally at $3,377, then a powerful resistance-turned-support.
However, the 14-day RSI remains above the midline, currently near 52, keeping buyers hopeful.They need to recapture the abovementioned Fibo level of $3,377 to regain the upper hand.
Acceptance above the $3,440 static resistance is critical for a sustained uptrend, targeting the June 16 high of $3,453 next.
If the selling bias intensifies again, Gold price could challenge the $3,340 area, which is the confluence of the 21-day SMA and the 50-day SMA.
The next support on sellers’ radars is the 38.2% Fibo level of the same rally at $3,297.
GOLD buyers refuse to give up yet?
Gold price is licking its wounds below $3,400 early Friday, having bounced off the $3,350 psychological mark. Despite the recent pullback from five-week highs, Gold price remains on track to book a weekly gain.
Markets have turned a bit in Friday’s Asian trading, assessing the gravity of the ongoing military conflict between Thailand and Cambodia.Both Asian nations have requested the United Nations Security Council to call an emergency meeting on Friday, according to China’s CCTV News.
Investors remain worried that the clash between these two countries does not translate into a wider regional conflict.Risk-off flows revive the haven demand for both the US Dollar and Gold price, fuelling a bounce in the former while capping the latter’s downside.
Additionally, markets remain wary ahead of next week’s crucial US Fed and the Bank of Japan monetary policy decisions.
Hence, a short-covering recovery in Gold price cannot be ruled out as the USD heads for the biggest weekly drop on easing trade tensions.
US trade deals with Japan, Indonesia and Philippines, as well as, some progress on the US and European Union trade negotiations have helped ebb fears over a potential tariff war restarting as the August 1 deadline nears.
Besides, the mid-tier US Durable Goods Orders data could keep traders entertained heading into the weekend.
Daily technical analysis
Gold price extended the downside on Thursday and settled below the 23.6% Fibo level of the April record rally at $3,377, then a powerful resistance-turned-support.
However, the 14-day RSI remains above the midline, currently near 52, keeping buyers hopeful.They need to recapture the abovementioned Fibo level of $3,377 to regain the upper hand.
Acceptance above the $3,440 static resistance is critical for a sustained uptrend, targeting the June 16 high of $3,453 next.
If the selling bias intensifies again, Gold price could challenge the $3,340 area, which is the confluence of the 21-day SMA and the 50-day SMA.
The next support on sellers’ radars is the 38.2% Fibo level of the same rally at $3,297.
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