“Gold” Prices Fall Strong, Don’t Catch the Bearish Gold Knife by Investing.com

Written by Parani Krishnan

Investing.com – Buyers are unable to shake off the rubble of their losses as gold continued in a 6-day losing streak and gold for a short time broke below the level of primary support at $ 1,700 an ounce.

“I’m not sure I can identify an asset that is more hated than gold,” says Adam Patton of Forex Life. “I think gold will enter the range of $ 1,670 to $ 1,700 an ounce, due to the macroeconomic recovery. But for now, gold as a knife continues to decline.”

“The bears are taking back control,” admits Joel Franck of FX Street. “The risks will be on the downside, especially with the release of the jobs report on Friday.”

It closed at $ 1,715.80 an ounce, down $ 17.80 an ounce, and during the session hit $ 1,699.95 an ounce.

Since February 22, standard gold contracts have lost nearly $ 93, or about 5%. In Tuesday’s session, it was the only positive session in 7 sessions, and gold rose about $ 10, or 0.6%. While the United States has further increased pressure on gold prices.

Yields and the US dollar index rose as expectations for expansion of Corona virus vaccinations increased on Tuesday, and he said all adults in the United States will receive doses of the Corona virus vaccine. ‘by the end of May, that is to say two months before the predefined date. With the epidemic’s fallout picking up more quickly, risk appetite increases and investors are distracted from safer assets such as gold.

Analysts say the market is still home to some buyers who want inflation to rise due to the huge stimulus package and its role in the positive impact on gold. The package is expected in the next week.

Fed Chairman Jerome Powell will speak tomorrow at a Wall Street Journal event, and if his outlook is less bullish than before, gold will get a boost.

And the most important event for the gold market is the Friday release. Market consensus indicates growth of 180,000, after an increase of 49,000 jobs. And any vigorous growth can constrict.

FX Street Franc says, “Any strong number will point to a sharp drop in gold, and it can go up to resistance between $ 1,660 and $ 70 an ounce.”