Gold price continues to face stiff resistance at the 100-Daily Moving Average at $1794 while daily technical setup continues to remain in favor of the bears.
The broad-based selling pressure surrounding the greenback during the first half of the day on Wednesday allowed gold to extend its recovery.
While testifying before the House Select Subcommittee on the Coronavirus Crisis on Tuesday, FOMC Chairman Jerome Powell said that “a substantial part or perhaps all of the overshoot” in inflation were from categories directly affected by the reopening.
On Wednesday, the data from the US showed that the business activity in the manufacturing sector continued to expand at an unprecedented pace with the Markit Manufacturing PMI climbing to a new series-high of 62.6.
Additionally, the Relative Strength Index on the daily chart holds below 40, suggesting that there is more room on the downside before the pair becomes technically oversold.
Update: Gold trims weekly gains, the first in four, with a recent retreat to $1,778 amid a lackluster Asian session on Thursday.
The latest weakness in gold prices could be linked to the uncertainty over the passage of US President Joe Biden’s infrastructure spending package before policymakers go on a recess.
Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.
FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
The trend in GBP/USD has been sour mainly on the back of the exponential growth of new contagions related to the coronavirus Delta variant, with fears of the further easing lockdown measures.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice.