The yellow metal has surrendered its early gains to 1-1/2-year tops. What else is revealed in the 25 January Gold Price Technical Analysis? Read on and find out.
25 January, GKFX – Gold surrendered the majority of its early gains to the highest since August 2016 and quickly retreated back below $1360 level during the early European session.
• Easing USD bearish pressure prompts some profit-taking.
• Sliding US bond yields might continue to lend some support.
The US Dollar tumbled to fresh three-year lows on comments by the US Treasury secretary Steven Mnuchin, saying that he welcomed a weaker currency, and continued benefitting the dollar-denominated commodity through the Asian session on Thursday.
A broad-based greenback sell-off receded a bit following IMF chief Christine Lagarde’s comments and prompted some profit-taking at higher levels, especially after the recent upsurge of over 3% since last Thursday.
A further downside, however, seems more likely to be cushioned by a softer tone around the US Treasury bond yields, which tends to underpin demand for the non-yielding yellow metal.
25 January Gold Price Technical Analysis
A follow-through retracement below the $1355 immediate support is likely to accelerate the corrective slide back below $1350 level towards its next support near the $1344 region.
On the upside, the $1365-66 area might now act as an immediate resistance, above which the metal is likely to aim towards testing July 2016 highs resistance near the $1375 region.
This article 25 January Gold Price Technical Analysis 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.
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