6 August Gold Price Technical Forecast: Gold is creating a head-and-shoulders pattern


After touching its lowest level in more than a year at $1204, the XAUUSD staged a modest recovery. How is it trading at the moment? The following 6 August Gold Price Technical Forecast reveals.

6 August, GKFX – A broad-based greenback strength didn’t allow the pair to extend its gains and pushed it below the $1210 mark.

Following a slump to a fresh session low of $1207 in the early NA session, the pair retraced some of its daily losses and was last seen trading at $1210, where it was down 0.3%, or $3.5, on the day.

US Dollar Index sticks to daily gains above 95

Despite a lower-than-expected nonfarm payroll employment number last Friday, the US Dollar Index finished the previous week above the 95 mark for the first time since late June and preserved its bullish momentum.

After advancing to a daily high of 95.52, the index erased a portion of its daily gains and was last seen at 95.38, where it was still up 0.23% on the day. A sharp drop witnessed in the U.S. T-bond yield seems to be the primary reason why the greenback is having a difficult time pushing above mid-95s.

In the meantime, major equity indexes started the day mixed on Monday suggesting that the risk appetite is not strong enough to dominate the markets, which benefits safe-havens such as gold At the moment, the Dow Jones Industrial Average is down 0.25% on the day while the S&P 500 is virtually flat.

6 August Gold Price Technical Forecast

The initial support for the pair aligns at $1207 (daily low) ahead of $1200 (psychological level) and $1194 (Mar. 10, 2017, low). On the upside, resistances align at $1224 (20-DMA), $1234 (Jul. 25/26 high) and $1249 (50-DMA).

Disclaimer

This article 6 August 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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