collected by :Irax John
A rebounding U.S. stock market and U.S. dollar index at mid-week are also negatives for the precious metals markets.
(Kitco News) – Gold prices ended the U.S. day session slightly lower Wednesday.
The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents.
And the future direction of the U.S. stock market will have a big influence on many other markets, including the precious metals.
Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00.
Gold Prices Stall as US Dollar Firms
as informed in Talking Points:Gold Prices Stall as US Dollar FirmsDaily Support for Gold is Found Near $1,245.00Looking for additional trade ideas for Gold & the US Dollar?
If the US Dollar remains above this point, it may suggest further weakening of US Dollar priced assets such as gold.
Read Our Market ForecastGold prices are back trading under weekly highs, as the US Dollar gains strength in the short term.
Technically gold prices remain bullish however, trading above both its 10 day EMA (exponential moving average) at $1,245.10 and 200 day MVA (simple moving average) at $1,245.35.
If the US Dollar continues to rally however, traders may look for gold to drop below both averages signaling a chance in the markets current trend.
as informed in US bond yields also moved to highs around 2.42% and the combination put downward pressure on gold prices.
A rebound in the dollar and improved tone surrounding risk appetite has curbed support for gold, although the impact was offset by a fresh decline in Euro-zone yields and overall demand for gold held firm.
US yields also faded and gold pushed back above the $1,250 level ahead of the US open after finding solid support below this level.
After initial consolidation, the dollar continued to gain ground later in the US session with USD/JPY breaking above the 111.00 level.
The data supported the dollar with USD/JPY resisting a further test of support in the 110.00 level while Treasuries eroded gains which pushed 10-year Treasuries above the 2.40% level.