XAUUSD Analysis Article – USD Will Have a Strong Impact on Gold
DAILY BRIEF— Gold has been quite a tricky instrument to trade in recent days with high volatility & wider spreads caused due to offsets in the physical gold market & the spot prices in gold. The major development that came in the yellow metal was the relentless buying to a sudden stop.
Bloomberg added that Russia’s buying of gold in recent years has been a pillar of support for the market. According to a report the Bank Rossii holds around a 75million ounces of gold. As the decision was announced by Russia’s Central Bank that it will not be buying any more of the yellow metal as of 01/04/2020 with no explanation given, saw the gold prices fall below $1600.
As for today, I have a bearish outlook, and prices might fall to $1500 in the coming days rather than going up to $1700 which was the outlook at the start of the year, A break below 1588.48 will surely solidify the bearish move. Other key price points will be the 100DMA & 200DMA which are 1547.17 & 1512.96 respectively are worth looking out for. As the market awaits the jobs data from the US, the price of the United States Dollar will have a strong effect on gold prices going forward.
