Fed rate cuts and dollar selling also not helping gold to shine
It looks like the liquidation trade in gold is still far from being over and the commodity is now down to the lows for the day around $1,513 currently.
Notably, price is now breaking under the 100-day MA (red line) @ $1,535.84 and that means the near-term bias will turn more neutral. There is some minor support around $1,512 to $1,519 but the key level to watch will be the 200-day MA (blue line) @ $1,500.
A break below that will see sellers resume control of the pair as the bias turns more bearish. From a technical perspective, that will point towards further downside for gold despite the current market environment supposedly favouring bullion.
But you never fight what the technical picture is saying and in gold, there hasn't been any signs of a near-term turnaround back to the upside since hitting $1,700.
Until that changes, there is still little incentive to lean on gold for the time being even as the fundamental picture looks to be getting better. However, the flows and technical picture are not siding with that so it may still take some time before gold rises from the ashes.
