The price of gold increased by 0.45 %on Friday to $ 1,760.02 and closed the week at this level. Thus, the gold was risen on the second day in a row. Great US stock indices such as Dow Jones, S&P 500 and Nasdaq Composite rise 1.24 %, 0.91 %and 0.28 %, respectively, while the European stock indices seem to be complicated for the losses between 0.04 %and 0.84 %.
“Falling bond returns support for gold price”
Meanwhile, the US 10 -year Treasury bond interest rate, which supports this week’s dollar rally, fell five basis points (BPS) and sat in 1.475 %since Monday. Kriptokoin.comAs you have followed from their news, the US Democratic Party leaders want to delay the vote of the $ 550 billion infrastructure budget if the Assembly and the Senate does not approve the tax and expenditure package of $ 3.5 trillion.
However, the US dollar index (DXY), which measures the performance of the six currencies of the dollar against the basket, fell to 94.02 with a 0.25 %drop for 94.02, as the US was under pressure due to its political uncertainty.
Technical appearance: RSI supports the downward trend
According to market analyst Christian Borjon Valencia, an increase of 40 dollars on Thursday provided a new high support level of around $ 1,750,60, the lowest level of June for gold. However, the analyst states that the daily moving averages are well above the spot price and the range of $ 1,783-1.809 moves the price downward and points to the following technical levels:
Golden bulls will have to go above $ 1,800 to recapture the control. However, there will be some obstacles in front of them. The first resistance will be $ 1,783,00 of the 50-day moving average (DMA) and $ 200-DMA $ 1,801,00 immediately. The fracture of the latter can apply upward printing on the price of gold and leave the 100-DMA at $ 1,809,00 as the next resistance level.
On the other hand, analyst Christian Borjon Valencia says that they will need one -day closing below $ 1,750,60, the lowest level of June to maintain the downward trend of golden bears and continues their analysis in the following direction:
In this case, the first support for gold will be $ 1,721,52. The violation of this release point may pave the way for further losses. The following demand levels will be $ 1,700,00, and then the lowest level of August 9 will be $ 1,687,19. The relative power index (RSI) in 46 supports the downward trend because it is still below the 50-medium line, which shows that the price is consolidated before it continues to decline.
Gold Price Daily Graphic / Source: FXSTREET