Gold Price Technical Forecast


Gold trades in the red despite risk-off action in stocks. Stay updated on the latest 5 February Gold Price Technical Forecast to see how the precious metal is trading.

5 February, GKFX – Gold (XAU/USD) finds no takers in Asia despite Friday’s sell-off in the equities and the weakness in the Asian markets.

Key Quotes

  • Gold under pressure despite risk aversion.
  • Rising yields could be hurting the zero-yielding metal.

As of writing, the zero-yielding safe-haven metal is changing hands at $1330 – down 0.30 percent on the day.

US stock markets fell sharply on Friday after the strong wage growth figures and fiscal deficit concerns pushed the 10-year yield well above 2.8 percent; the highest level since 2014. The rising yields spooked investors, leading to a 2.12 percent drop in the S&P 500 index.

Still, the yellow metal is trading in red, possibly because the solid rise in the treasury yields makes the zero-yielding safe-haven metal unattractive.

Ahead in the day, the rising yields could continue to put pressure on the metal. However, worsening of the risk aversion could lift the safe haven metal.

5 February Gold Price Technical Forecast

A break below $1328.99 (Fri’s low) would open doors for $1316.22 (38.2% Fib R of Dec-Jan rally) and $1308.22 (Jan. 10 low). On the higher side, breach of resistance at $1335.29 (23.6% Fib R of Dec-Jan rally) and $1342 (10-day MA) and $1350.13 (Feb. 2 high).

Disclaimer

This article 5 February 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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