Strong USD weighs on Gold – What can traders expect next?

Strong USD weighs on Gold, following the an upbeat manufacturing and job data in the US.ADS Securities’ analysts a bearish technical picture ahead.

19 May, ADS Securities – After trading higher for five consecutive sessions, the yellow metal lost ground yesterday and closed at $1252.80, amid a stronger greenback following an upbeat manufacturing and job data in the US.

Strong USD weighs on Gold – what is next for yellow metal?

On the 1H chart, the metal is trading with a negative tone, indicating at presence of weakness in the near term. Additionally, the MACD is tranquil at a lower level below its centreline, further confirming the above stance. Key technical support is located at the $1245 level, followed by the $1241 where EMA 200 is placed and $1239 levels. A clear breach below the latter might trigger further acceleration to the downside.

On the upside, important resistance is situated at the $1250 level where EMA 55 is trading, followed by the $1254 and $1258 levels. A surge above the latter might lead to positivity in the precious metal.

Strong USD weighs on Gold – what is next for yellow metal?

ADS Securities Risk Disclaimer

Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk. Hence, it may not be suitable for all investors.

All opinions, news, analysis, prices or other information contained in this communication are provided as general market commentary. It does not constitute investment advice. Nor a solicitation or recommendation for you to buy or sell any over-the-counter product or another financial instrument.

    Share Your Opinion, Write a Comment