Gold hangs near 4-week lows amid stronger USD. Study this extensive 8 February Gold Price Technical Outlook to see what else is discussed.
8 February, GKFX – Gold held on to its losses for the third consecutive day on Thursday and is currently placed just above 4-week lows touched earlier.
The yellow metal extended its bearish slide, which started following the release of US monthly jobs report, and a combination of factors was further seen contributing to the ongoing slide on Thursday.
Fed rate hike expectations weigh for the third straight day
A firmer US Dollar amid firming expectations of further Fed rate hike moves continued driving flows away from dollar-denominated commodities – like gold. Adding to this, improving investor’s appetite for riskier assets was further seen denting the precious metal’s safe-haven appeal.
The commodity has now retreated over $35 since last Friday and the prevailing USD strength, which is yet to show any signs of fizzling out, might continue exerting some downward pressure in the near-term.
8 February Gold Price Technical Outlook
Immediate support is now pegged near $1309-08 area, below which the metal seems all set to challenge the $1300 psychological mark. On the upside, any meaningful rebound might now confront immediate resistance near $1320 level, which if cleared might trigger a short-covering bounce towards $1326-27 support break area.
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