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Gold steadies after Friday's 3.2% plunge as $4,400 key level nears
The metal fell 3.2% on Friday, its biggest one-day drop since June 10, and traders are now watching $4,400 and $4,370 for directional cues.
Gold was slightly subdued on Monday after a sharp selloff on Friday, when the metal dropped 3.2%, its biggest one-day loss since June 10, according to Action Forex.
The outlet said gold paused near the $4,400 area, tied to technical reference points including a Fibonacci 38.2% level and the 20-day moving average, while a reversal pattern is being discussed on the daily chart after the first weekly decline in three weeks.
Action Forex attributed the move lower to hawkish remarks from Fed Chair Warsh at the Jackson Hole symposium that raised expectations for a rate hike and supported the US dollar.
The analysis also pointed to renewed tensions in the Middle East after the US and Iran exchanged fire over the weekend, which revived uncertainty and inflation fears, while noting that a sustained break below $4,400 could weaken gold further, and a return above the 200-day moving average at $4,327 could revive the bullish structure.
Latest closeGold $4,504.10 ▼2.3%