Fundamental Descriptions: Gold was down on Monday morning in Asia, climbing up from a more than three-month low hit in the previous session. Lower U.S. Treasury yields kept demand for gold afloat above the $1,800 mark. Marking its fourth consecutive weekly decline, the yellow metal fell more than 1% on Friday to its lowest level since Feb. 4 at 1798.86, before closing at 1811.15. Market participants now look forward to the US economic docket, featuring the release of the Empire State Manufacturing Index for a fresh impetus later during the early North American session.
Technical View: Last week’s sustained break and acceptance below the very important 200-day SMA was seen as a fresh trigger for bearish traders. Prices showed some resilience below the 1800 mark on Friday.
Alternate Scenario: It will be interesting to see how early bulls will come forward to rescue gold in near term. Any upside attempt may lead the path for gold around the level of 1825-1830 region. This, in turn, might cap the metal near a technically significant moving average, around the $1,835 region.
Technical View: Last week’s sustained break and acceptance below the very important 200-day SMA was seen as a fresh trigger for bearish traders. Prices showed some resilience below the 1800 mark on Friday.
Alternate Scenario: It will be interesting to see how early bulls will come forward to rescue gold in near term. Any upside attempt may lead the path for gold around the level of 1825-1830 region. This, in turn, might cap the metal near a technically significant moving average, around the $1,835 region.