Gold Price Technical Forecast


Despite being a classic safe-haven asset, the bearish sentiment in the gold (XAU/USD) options market continues to strengthen. How does it trade currently? The 1 March Gold Price Technical Forecast reveals.

1 March, GKFX – The S&P 500 fell 30.45 points, or 1.1 percent, to 2,713.83 yesterday and the Dow Jones industrial average lost 380.83, or 1.5 percent, to 25,029.20. However, gold formed inside day Doji candle, signaling indecision in the marketplace.

Also, the Asian equities are reporting losses, still the yellow metal finds no takers. As of writing, the yellow metal is trading around $1,315 – down 0.14 percent on the day.

Bearish bets continue to rise

Further, the risk reversals indicate the traders are expecting a further drop in the yellow metal. The one-month XAU/USD risk reversals gauge stands at -0.325 – the lowest level since Feb. 5. The negative print shows the implied volatility premium for XAU puts (bearish bets) is higher than the implied volatility premium for XAU calls (bullish bets). In simple terms, it means the demand for bearish bets continues to rise.

1 March Gold Price Technical Forecast

A break below $1,307.50 (Feb. 8 low) would open up downside towards $1,304 (100-day moving average) and $1,300 (major psychological support). On the higher side, breach of resistance at $1,318 (session high) could yield re-test of the 10-day moving average currently seen at $1,327 and $1,332 (50-day moving average).

Disclaimer

This article 1 March Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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