Immediate decline and expectations of further monetary tightening rose and focus towards the bank’s minutes and inflation data.
The dollar rose against a basket of currencies as treasury yields rose after the close of trading for the President’s holiday in the United States of America yesterday.
Gold prices declined for the second trading session and the second week in a row, and it is trading below the technical level of the 50-day average for the first time in months.
It declined by 0.4% against the American currency, it fell by 0.3%, and the British pound fell towards the 1.2000 level for the dollar.
The two-year yield rose to the highest level since November. With investors focusing on the Federal Reserve’s minutes later on Friday. and PCE data, the Reserve Bank’s preferred measure of inflation.
Musa Mohamed Tayeh, financial markets analyst at AccuAndex, said the US Federal Reserve is likely to continue raising interest rates further. Following the economic data in January with the consumer price index rising higher than expected. And retail sales data and the producer price index, which give a signal for a rate hike from the world’s largest bank.
Elsewhere, the price of the most famous and traded currency and symbol rose above $25,000, and it is still a major technical obstacle in front of the gains.
It fell today, Tuesday, to the level of 1843 dollars an ounce, with a decrease of 0.35 percent.
Technical analysis of the spot gold price
Gold prices are still trading in a bearish direction in the short term, after closing negatively below the important technical level of $1862 an ounce.
Looking at the hourly chart, the spot gold price is trading below the 50, 100, and 200 hourly simple averages, which is a negative sign.
Gold price remains bearish, with the $1850 resistance level intact. A breach of the latter could restore stability towards 1861 and 1862 dollars, the 50-day average.
To change the trend from bearish to bullish, we need a rise above $1870 an ounce to test $1890 once again.
On the daily frame of the spot gold price, the support level can be found at $1820. Closing the day below that level will lead to heavy selling towards $1785 an ounce. The confluence of the 100- and 200-day simple average. In addition to the 50% Fibonacci level shown below.
