The precious yellow metal finished lower after choppy trade on Wednesday, while the safe-haven US Dollar also eased away from 16-week highs, as ‘risk appetite’ return back to stocks, however, inflation fears and concerns about the highly contagious coronavirus Delta variant kept investors cautious.
Another safe-haven asset, the Japanese yen, was also down on the day against the US Dollar, as risk aversion eased.
As well as looking past rising Delta coronavirus variant cases, market participants seemed to set aside concerns from last week’s data that showed a surge in U.S. consumer prices in June, which could prompt the U.S. Federal Reserve to bring a quicker end to emergency stimulus measures.
Meanwhile, spot gold technical assessment has lost some momentum as the bulls ease away from the recent tops of $1,833-35 an ounce.
Viewing the technical display, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has plummeted beneath the 50-midway point (negative signal), while the Moving Average Convergence Divergence (MACD) supports a positive signal, although, has weakened.
The Average Directional Movement Index (ADX) trend indicator decline suggests the presence of a trading market and the absence of a trend.
Considering the lack of momentum since Monday’s rebound, eyes now turn back to the support, with the immediate target viewed at $1,798, with the key bearish trigger level at $1,786.
A decisive break here negates the upside risks and exposes the $1,760 region.
The resistance is $1,813-16, with the $1,833-35 seen as a near-term cap.