Market analyst Eren Sengezer states that the gold price closed in negative territory after jumping to its highest level in more than a month at $1,820 on Tuesday and assesses that it is struggling to recover from the bearish pressure in the middle of the week. The precious metal was last trading at $1,795, down 0.6% on the day. Eren Sengezer’s gold analysis and levels to watch Cryptocoin. com we have prepared for your readers.
“Declining pressure for gold strengthens”
Wednesday’s renewed dollar strength is putting pressure on gold ahead of the American session. The US Dollar Index (DXY) is holding on to modest daily gains at 96.35 as investors remain cautious amid rising numbers of Omicron cases. No high-level macroeconomic data will be released for the remainder of the day, and investors will continue to focus on risk perception.
The analyst noted that U.S. stock futures posted small gains, noting that risk flows could return in the second half of the day, but weak trading conditions make it difficult to assess market sentiment. Meanwhile, the benchmark 10-year U.S. Treasury bond yield is rising towards 1.5%, not allowing the yellow metal to rally. Analyst Eren Sengezer reminds that the Relative Strength Index fell below 50 on the four-hour chart, confirming the view that the bearish pressure is getting stronger, and draws attention to the following technical levels:
On the downside, the 100-period SMA forms initial short-term technical support at $1,790, ahead of $1,785 (static level). On the upside, $1,800 (psychological level) aligns as initial resistance before $1,805 (200-period SMA).
Gold price 4-hour chartAnalyst states that if a four-hour candle closes above the second, buyers may see it as an opportunity to retake control of gold’s movement.
Gold price levels to watch
