Gold Finding it Hard to Push Above the 200 SMA
Gold lost around $100 in a few days and buyers are finding it hard to regain momentum again as MAs turn into resistance
Gold was very bullish from November until the end of February but it has mad a bearish reversal and remains quite weak since last Friday. We saw it edge higher yesterday, with investors banking on the precious metal’s safe-haven appeal as concerns about an economic slowdown linger, after a stronger USD and higher Treasury yields sent Gold prices to a one-month low.
Gold H4 Chart – The 200 SMA Acting As Resistance
Buyers are still banging the price against this moving average
The USD index DXY climbed to a month-high, making Gold more expensive for buyers holding other currencies. Although there are still concerns over a slowdown if we avoid a global recession and thereare other major risks as well, which will likely keep demand for Gold strong this year.
But, buyers are finding it hard to push the price above the 200 SMA (purple) on the H4 chart, which seems to have turned into resistance now. We have seen some attempts by byers to push the price higher these last two days, but they keep failing at the 200 SMA which is rejecting the price. We just saw a 50 pip decline in the USD, which is pushing risk assets higher as I write. FED’s Jerome Powell just said that they didn’t expect the jobs report so strong to be this time. Although GOLD buyers still seem reluctant, whih is a bearish signal.
Gold XAU Live Chart
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