Gold weakens to $1315 level as it hangs closer to 5-week lows. What else is disclosed in the 9 February Gold Price Technical Outlook?
9 February, GKFX – Gold struggled to build on overnight rebound from near 5-week lows and has now retreated to the lower end of its daily trading range.
Despite a modest weakness to $1315 level, the precious metal struggled for a firm direction and seesawed between tepid gains/minor losses through the Asian session. A combination of diverging forces failed to provide any fresh impetus and has led to a range-bound/subdued price-action on the last trading day of the week.
Fed rate hike expectations to cap any meaningful gains
A fresh wave of selloff across global equity markets was seen underpinned the commodity’s safe-haven appeal. The positive factor was largely negated by firming Fed rate hike expectations, which tends to drive flow away from the non-yielding yellow metal.
Meanwhile, the recent sharp US dollar recovery has been exerting downward pressure on dollar-denominated commodities – like gold since last Friday, with spot prices now trading down more than 1% for the week and remain on track for the second straight weekly loss.
9 February Gold Price Technical Outlook
A follow-through selling pressure has the potential to drag the commodity back towards $1308 horizontal support before the fall extends further towards the key $1300 psychological mark.
On the upside, $1322 area now seems to have emerged as an immediate resistance, above which a fresh bout of short-covering could lift the metal beyond $1327-28 intermediate resistance towards its next hurdle near the $1333-35 region.
This article 9 February Gold Price Technical Outlook 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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