Superior broker technology provider since 2010
+1 (315) 675 1086 |

Gold Technical Analysis: Facing New Buying Levels

The price of gold extended its decline after US Central Bank Governor Jerome Powell said in prepared remarks that the Federal Reserve is ready to increase the pace of raising US interest rates if necessary. Gold market losses extended to the support level of 1813 dollars an ounce, its lowest in a week. US dollar and Treasury yields advanced, affecting bullion prices, which fell as much as 1.4%, the biggest decline since February 3. XAU/USD gold price is poised for further collapse.

Powell added that the US central bank is likely to raise interest rates higher than previously thought, and that he is ready to accelerate the pace of increases if economic data calls for it.

“Recent economic data came in stronger than expected, indicating that the final level of interest rates is likely to be higher than previously expected,” Powell said also Tuesday in prepared testimony before the Senate Banking Committee. Until faster tightening is warranted, we will be prepared to increase the pace of rate hikes.”

Faced with pressure from rising interest rates, strong demand from central banks has helped support prices in recent months. Yesterday’s data showed that China increased its gold reserves for the fourth month in February, joining other Asian countries in increasing their holdings as the dollar’s strength waned. Turkey has also been a major buyer recently.


For his part, Morgan Stanley said in a note: “For 2023, we need to consider both macro factors and the demand side, but the new trend line indicates that gold is likely to be more reactive to changes in returns than it was in 2022.” Central bank purchases may slow, but demand for jewelry and technology could see a boost from China’s reopening.

  • The downward trend in gold prices, XAU/USD, increased in strength with yesterday’s selling operations.
  • This is after attempts to rebound upwards for five consecutive trading sessions.
  • We had recommended selling gold from the resistance level of $1860 an ounce, prior to yesterday’s move.
  • The bears are now ready to move the price of gold towards the psychological support level of $1,800, and then to the support levels of $1,788 and $1,770, respectively, which are sufficient to push the technical indicators towards strong oversold levels.

On the other hand, according to the performance on the daily chart below, the bulls will not have an opportunity to control the performance without moving towards the $1855 resistance level again. I still prefer to sell gold from every level up. The market may remain under pressure from the strength of the US dollar until the US job numbers are announced by the end of the week.

Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.


Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.