Gold Violates Symmetrical Triangle Pattern – Triple Bottom in Play
Arslan Butt • 3 min read
During Monday’s Asian trading hours, the safe haven metal, gold, failed to halt its overnight bearish performance, taking some additional offers around the $1,860 level, as upbeat US data and chatter over President Joe Biden’s infrastructure spending plan left a positive impact on the market trading sentiment. Meanwhile, the receding coronavirus (COVID-19) woes in some key economies have further boosted the market trading mood, which was seen as another critical factor that weighed on the safe-haven yellow metal.
The prevalent bullish bias surrounding the US dollar has also played a significant role in undermining GOLD, the price of which is inversely related to the price of the greenback. However, the US dollar recovered from a low of 89.9570, reaching a high of 90.6110 on the day, with some major support from the previously released upbeat US data. On a different note, the absence of any fresh surprises from the Group of Seven (G7) meeting, which was concluded over the weekend, probed the risk-on mood and helped to limit any deeper losses in the gold price. Meanwhile, the losses were also capped by the cautious sentiment ahead of this week’s Federal Open Market Committee (FOMC) meeting. The yellow metal is trading at 1,864.80, and consolidating in a range between 1,860.37 and 1,877.86.