Gold Price Continue Lower For The 4th Day On Strong USD, Technical Analysis Pointing More Low To Come

Gold prices broke down as the dollar continued to trade higher despite subdued US yields. Stronger than expected US mortgage applications lifted the USD which paved the way for lower gold prices. The dollar continued to benefit from a safe-haven bid, which has not been the case for gold prices.

Technical analysis

Gold price continue lower and are poised to push towards support 1,843, any lower will target 1,770. The 20-day moving average crossed through the 50-day moving average which means a short-term downtrend is in place.

Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal.

Short-term momentum is negative as the fast stochastic recently generated a crossover sell signal. The relative strength index is moving lower reflecting accelerating negative momentum.