The XAUUSD daily chart has fallen from its bullish channel, between the upper blue and red bands, into its neutral area, between the blue bands (green rectangle). On a relative basis, this is a bearish development, as money rotates out of the precious metal.
The gold hourly chart is also presenting adverse developments. Its trend following EMAs and stochastic have crossed down (black ellipses). If the stochastic pushes below 20 and holds there (blue arrow), the underlying momentum will pressure the precious metal further.
The H4 chart below shows an increase in real rates (red arrow), likely contributing to the emerging bearish sentiment (red curve). As such, we continue to monitor these. If they continue to move up, gold will be facing further headwinds.
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.