Gold Lower Peak
Some weakness is evident in the weekly gold chart. A lower peak has charted. If a lower trough follows, the yellow metal will be in a defined downtrend on a weekly basis. The RSI has dipped below 50 (blue rectangle), which does suggest that there is an underlying bearish momentum. The longer it maintains under 50, the more pressure will be applied to the gold price.
Gold Moves Contrary to USDOLLAR
Acting as a headwind is the stronger dollar, on the back of higher real yields. Moreover, capital is finding its way towards the greenback as the Chinese property sector comes under pressure. As such, as FXCM's USDOLLAR ends its downtrend, the precious metal is under pressure.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.