Gold Falls as Dollar Firms - 9 June 2017

09 June 2017 7:41:44 AM


Gold prices fell 0.7% yesterday, extending their losses to a second straight session, as renewed strength in the U.S. dollar dampened demand for the precious metal. Technical selling was also behind the market’s decline yesterday. The XAU/USD pair initially tried to break up above the $1289.10-$1288 area, which I had identified as a key to $1295.50, but ultimately failed and breached a strategic support at $1282. As a result, gold traded as low as $1271.26 an ounce before recovering slightly.

Prices remain above the 4-hourly Ichimoku cloud but we have negatively aligned Tenkan-Sen (nine-period moving average, red line) - Kijun-Sen (twenty six-period moving average, green line) lines and the shorter-term (H1 and M30) charts are bearish at the moment. The shorter term charts indicate that a retest of 1271.50-1269 is likely unless prices climb back above the 1280-1277.35 area. A break down below 1269 could contribute further pressure on the market and open a path to the 1265.60-1263 zone, where the bottom of the 4-hourly cloud sits.


On the other hand, if XAU/USD get back above 1280, then we may test 1283.62/1282 area. The bulls will need to push prices beyond 1283.62, which also happens to be the Kijun-Sen on the H4 chart, so that they can find a chance to march towards 1289.10-1288. Closing above 1289.10 on a daily basis would be a positive signal and suggest that the market might make a fresh assault on 1295.50.


Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a Account Now