Gold weakens ahead Fed Dudley speech, as the US dollar is expected to firm. Accordingly, ADS Securities’ analysts eye gold weakness in the near term.
19 June, ADS Securities – The precious metal surged in the prior session, led by a weaker US Dollar and following a batch of disappointing economic data in the US that clouded the nation’s 2Q economic outlook.
Gold weakens ahead Fed Dudley speech
At present, the yellow metal is trading below the short term and long term EMA’s on the 1H chart, reflecting at the presence of weakness in the near term. Also, the MACD indicator is placed at a lower level below in the negative territory, hinting at a likely bearishness in the coming session.
Key near term support is placed at the $1250 level, followed by the $1248 and $1245 levels. If the latter fails to hold, it might lead to increased selling pressure in the commodity. The key technical barrier to be watched is aligned at the $1254 level, followed by the $1257 where EMA 55 is trading and crucial $1260 levels.
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