Gold hits the low price level of the downtrend line good to buy now? check here:
Gold is moving in a downtrend by forming lower highs and lower lows in the daily time frame chart.
In our last week Gold update , we recommend to our users that gold is going to reach the lower low zone (bottom) of the downtrend line.
Finally, Gold hits the lower low zone of the downtrend line now.
The US Dollar remains strong, so wait for the complete confirmation of reversal or breakout for entering into the gold.
Gold Prices seems lower as US Dollar performing high. And also, Investors seek riskier currencies and US Bonds to earn more interests other than Gold.
Corona Pandemic now getting closed by Vaccinations in the US, this is a bigger relief for the US economy.
And Gold is a safer asset, now pandemic getting solved in fast progress, this result in Gold prices fell by 15-18% from last August 2020.
USD remains strong
US Dollar drives higher as US Bonds yields surge higher more as Sell off in Bonds.
And FED statement clearly says no action for current Bonds yields surges, Wait and see approach Following, one asset Growing is not a concept for US Economy and the Domestic data is higher to compensate pandemic data.
This week ADP data and Friday Non-Farm Payroll Data came in a Positive number as expected, and this positive NFP data drives Dollar direction in further days.