KEY POINTS
Gold price fails to inspire bullish movement as it stays within a consolidation level
The Gold price movement has in recent days has been so uninspiring, with initial gains have dropped in the back end of last week. The upside movement in the Gold price has been capping within consolidation level at $1830 and $1810. The consolidation zone has been a tough zone for the market to break out in recent days, with the market betting on the Dollar movement to find direction.
It is important for the Gold investors to keep record of the U.S Dollar performance, which has also been trading very quiet within a consolidation mode in recent days, hence the Gold has found it hard to get a direction. We expect the sideways movement for the U.S Dollar and Gold to continue a little longer, and investors might get excited should the Dollar index trade lower and breach the key psychological level at $90.
The Gold bullish movement will rely on the U.S Dollar price dropping below its key support level at $90, which could start to see a market that renews its interest in the U.S Dollar bearish movement.
TECHNICAL OUTLOOK
The Gold market has clearly been a solid consolidation between $1800 and $1880, with the price failing to breach either up or down due to the subdued pressure from the U.S Dollar index movement that is trading above the key psychological level at $90.
The recent movement of the market has been on a consolidative mode after showing a head and shoulders forming, should the market break up the consolidation zone, we expect to see a rally in the price to the resistance level.
A further bullish movement will be confirmed once the market succeeds to trade past the resistance level at $1875, which could renew long-term rally for the Gold.
Lulama Msungwa
Research & Markets Analyst
Scope Markets
ECB in focus after surprise CPI decline TSMC earnings expected to lift tech-heavy Nasdaq Gold…
Eurozone CPI decline finally drops below 2% target US ISM PMI in focus, while expectations…
Asian fireworks continue, although Nikkei gains likely to reverse on Monday Inflation data sparks EUR…
ZEW declines fail to stifle European stocks Markets growing confident of a 50bp Fed rate…
Mainland European markets on the rise Gold and Silver push higher amid dovish Fed pivot…
European markets follow US stocks higher following CPI release ECB expected to cut by 25bp…