The precious yellow metal bearish pressure extended early Friday and posted a near three-month low at $1,810 as the US dollar index (US DXY), which tracks the greenback against a basket of its peers, briefly refreshes its highest level in almost 20 years at 104.93 before slipping back to 104.60.
Trading spot gold has been volatile as investors try to assess the impact of the highest inflation in decades (40 years) and are also concerned that the U.S. Federal Reserve will hamper growth to bring inflation under control.
Based on the technical assessment, the Relative Strength Index (RSI) indicator, 3-daily ‘lookback’ is negative, while the Moving Average Convergence Divergence (MACD) supports a negative signal.
With the $1,820-26 level reached now puts a neutral assessment in the short-term.
However, those looking to continue to trade in the short term could see a modest correction with the resistance viewed at $1,849-53.