FXStreet (Barcelona) – FXStreet Editor and Analyst, Dhwani Mehta, sees downside potential for XAU/USD, expecting the precious metal to test the support at $1142.
Key Quotes
“XAU/USD extends its downslide today, once again testing crucial support at 1147 levels. The pair dropped from 1156.70 highs, making fresh 4-month lows at 1147.16. The pair remains highly vulnerable despite heightening risk-aversion with Greece on the brink of bankruptcy, China stocks rout and commodities sell-off, failing to boost the sentiment around gold.”
“The daily RSI at 30.14, extends further into the oversold territory with markets anticipating a rebound on expectations of dovish Fed minutes due for release later today. Hence, the downside may remain capped by the critical support seen at 1142.67 (March 17 Low) levels. While to the upside, the pair may swing back higher on Fed minutes or on probable news of a Grexit, taking the pair towards daily highs at 1156.70, beyond which doors open for a test of 5-DMA located at 1161.27. Overall, gold prices are expected to remain undermined awaiting fresh news from Greece, while FOMC minutes remain the main focus.”
(Market News Provided by FXstreet)