COTD 21/05 - Gold
As the U.S. Dollar saw a week-long rally throughout last week, Gold saw a slump of around $30 an ounce.
On the back of this, we have seen the price decline to the longer term supporting trendline that stretches back to the low of August 2018 and as of writing, it is currently testing that trendline.
Could a close below start a new leg lower? One of the major factors that will determine whether this is a fresh leg lower for Gold is the trade war between the United States and China as the slide in the safe-haven asset has been triggered by tensions subsiding.
On top of that, from a technical perspective, the RSI is sitting in oversold territory and we also have the previous lows from the 23rd April and 2nd May to act as a minor support level to halt the slide.
Currently, the Dollar Index is sitting close to highs, if this begins to falter and fall away this could provide the catalyst for Gold to round off and look higher. We will be watching closely to see if the support level holds and if the Dollar begins to show signs of weakness.
XAUUSD
On the back of this, we have seen the price decline to the longer term supporting trendline that stretches back to the low of August 2018 and as of writing, it is currently testing that trendline.
Could a close below start a new leg lower? One of the major factors that will determine whether this is a fresh leg lower for Gold is the trade war between the United States and China as the slide in the safe-haven asset has been triggered by tensions subsiding.
On top of that, from a technical perspective, the RSI is sitting in oversold territory and we also have the previous lows from the 23rd April and 2nd May to act as a minor support level to halt the slide.
Currently, the Dollar Index is sitting close to highs, if this begins to falter and fall away this could provide the catalyst for Gold to round off and look higher. We will be watching closely to see if the support level holds and if the Dollar begins to show signs of weakness.
XAUUSD
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