Huitong.com, March 7 - Spot *** has retreated slightly from a record high above $2,160 an ounce and hovered above $2,155 an ounce. In an environment of continued weakness in the US dollar and US Treasury yields, the bulls remain in control of the market. However, according to the daily chart, the overbought state of the Relative Strength Index (RSI) keeps the bulls cautious.
During the European trading session on Thursday (March 7), spot *** retreated slightly from a record high above $2,160 an ounce and hovered above $2,155 an ounce. In an environment of continued weakness in the US dollar and US Treasury yields, the bulls remain in control of the market. However, according to the daily chart, the overbought state of the Relative Strength Index (RSI) keeps the bulls cautious.
*Traders are waiting for new directional drivers to emerge to provide new trading opportunities.
At 20:30 Beijing time on Thursday, the number of layoffs at challenger companies in the United States in February will be released, and the weekly jobless claims data will be released at 21:30. These data will provide new clues to the US labor market, which will affect the direction of the US dollar and gold prices.
At 23:00 Beijing time on Thursday, Federal Reserve Chairman Jerome Powell will deliver semi-annual monetary policy testimony before the Senate Banking Committee. Earlier, in a speech prepared for the House Financial Services Committee, Powell said that if the economy is broadly on track, it may be appropriate to start easing policy restrictions sometime this year.
As you can see from the daily chart,Gold prices are consolidating their recent rally to record highs. The overbought condition of the RSI on the 14th continues to keep the bulls cautious. If ** occurs, gold could find support near Wednesday's low of $2,124 an ounce.
Gold's next downside support is near the $2,111 ounce, which is Tuesday's low and the 23rd of the $1,984-$2,152 ounce rallyThe confluence of the 6% Fibonacci retracement level. If gold continues to fall below $2,111 an ounce, it could provide an opportunity for sellers to target the $2,100 mark.
However, any of the *** could be seen as a good dip opportunity, as the bullish crossover formed by the 21-day moving flat (SMA) and the 50-day moving flat is still in play. Bulls need to hold above $2152 to move further towards $2200. Until then, there will be some resistance at $2180.
Some analysts also pointed out that gold has completed the construction of an inverted head and shoulders pattern and confirmed a stand above 2144$60 an ounce, which paved the way for further surges in gold prices. On the 4-hour chart, the 50-period exponential moving flat** (EMA) is supporting gold prices. It should be noted that if the price of gold falls below 2144$60 an ounce, which would end the bullish scenario and could push gold into some bearish correction before recovering again.