© Reuters.
Investing.com — Gold ended down for a 3rd straight day as expectations for the next U.S. debt ceiling took extra shine away from the protected haven.
However the yellow metallic’s maintain above the technical assist of $1,940 stored alive hopes of market bulls in returning to $2,000 stage.
on New York’s Comex settled at $1,959.80 an oz., down $25.10 or 1.3%, after a session low at $1,954.45. The benchmark gold futures contract hit an all-time excessive of $2,085.40 on Might 4.
The , which displays bodily trades in bullion and is extra intently adopted than futures by some merchants, was at $1,956.95 by 14:50 ET (18:50 GMT), down $24.65, or 1.2%. Spot gold’s session low was $1,952.03. It hit a file excessive of $2,073.29 earlier this month, based on Investing.com knowledge.
“If gold breaks beneath 1,942 with none vital restoration, the midterm development turns bearish calling for a deeper correction,” stated Sunil Kumar Dixit, chief technical strategist at SKCharting.com.
However even when that assist was breached, “some bounce again from the lows may be witnessed taking gold to a minimum of [the] $1,975-$1,986 zone”, Dixit stated.
He, nonetheless, added that gold bulls would have bother catching a break as long as the greenback continued its cost larger. The hit a seven-week peak of 103.485 on Thursday amid optimism over a U.S. debt ceiling settlement being struck to avert a possible default earlier than June 1.
“Because the Greenback Index continues to rise, gold bears are having a very good time pushing gold deeper into $1,952,” stated Dixit. “Some additional drop to the 50% Fibonacci stage of $1,942 appears extra possible than earlier than.”
Analysts at UBS forecast that gold would hit $2,100 by the year-end and $2,200 by March 2024, urging traders to maintain the yellow metallic as amongst prime picks of their portfolio.
