Gold had the biggest drop in 7 weeks, wiping out all gains previously and is now back to 4-month support at 1760.
The gold has struggled to make any progress since it reached a high of 1830 and consolidated for more than 3 weeks, and it finally lost its grip amid a strengthening dollar due to a strong US labour market.
As of current and despite a strong selloff last Friday, the price is still seen supported at the demand zone around 1750 and we might expect some significant rebound before further selling occurs.
We also want to take note that the US is also releasing its inflation data and inflation plays a huge role in gold prices should the price breaks below the 1750 demand zone.
Otherwise, from a pure technical perspective, we do see a potential for the gold to fall even deeper and potentially retest the 4-month low at 1680.
This week, we will wait for a pullback first from the recent bearish wave and look for selling opportunities from 1785, and as high as 1800.
The gold has struggled to make any progress since it reached a high of 1830 and consolidated for more than 3 weeks, and it finally lost its grip amid a strengthening dollar due to a strong US labour market.
As of current and despite a strong selloff last Friday, the price is still seen supported at the demand zone around 1750 and we might expect some significant rebound before further selling occurs.
We also want to take note that the US is also releasing its inflation data and inflation plays a huge role in gold prices should the price breaks below the 1750 demand zone.
Otherwise, from a pure technical perspective, we do see a potential for the gold to fall even deeper and potentially retest the 4-month low at 1680.
This week, we will wait for a pullback first from the recent bearish wave and look for selling opportunities from 1785, and as high as 1800.
