A key marker in gold kept gold's price from moving above a certain level and is now spelling bearishness on the metal. After a brief recovery from the bottom in the $1750s, gold gives investors a reason to short on the newest setup. On the fundamental side, US dollar sentiment is growing increasingly attractive on rising bond yields and good jobs data expectations. More insight on our sentiment on the USD can be found in another article here.
For at least this week, I am feeling more bearish on gold because of dollar strength in the short term. A key indicator for gold's success lies in a slowing jobs market which doesn't look like it's going to be doing that in the US. on top of that, gold's recent downtrend has been strong, and it looks like that could continue in the short term.
Gold could not break this key level on the 4H where there is a falling trend line that caused price to dip back under resistance. This could be a level for traders to look to enter or reenter their short positions on this pair.
A close look at gold on the 15 minute timeframe shows a possible retest on resistance near $1773. This could be a sign for traders to get back into more short positions and extend the downtrend.
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