The yellow metal is consolidating after 2 days of losses. After China eased COVID restrictions, economic growth expectations are stimulated influencing the fall of gold yesterday. Another impact is the FED aggressive outlook which boosted the dollar. Today, gold remains steady as investors are hesitant to take on large positions ahead of the Policy Panel at the annual ECB Forum. Market participants will focus on Powell’s discussion. If he is more hawkish, this will lift the dollar and drag down the precious metal.
Gold is consolidating in a narrow downward channel. The yellow metal is trading below the 20 MA. MA 10 crossed MA 20 providing another bearish signal. Bollinger bands and RSI are supporting further downside. MACD is in the negative territory below the signal line keeping sellers optimistic about the downward trend. Breaking 1812.6 will open the door to the May low of 1805. Buyers will look for a move above 1835.
Key levels to watch from the downside 1812.65, 1805 – from the upside 1835