In addition to this, a death cross that has since materialized had been developing and was thus sending gold additional bearish indication. Despite the ensuing price movements on this event, whether a golden cross or death cross develops, it is fundamentally an underlying supporting fact to the original decision of the trader to make the trade of their choosing, and not be the foremost reason as to why the trade is being carried out, to begin with.
Technically speaking, the 1760 level was broken by the break below, where resistance can emerge. The ISM Non-Manufacturing PMI numbers, which were generally stronger than anticipated, served as the trigger for yesterday’s decline. Gold has entered oversold territory, while the last time this happened was August 2021, hence a rebound to critical resistance (1760) is likely.
However, the main area for bears in the downturn is between 1685 and 90, with some minor support at 1720. The US economy will continue to be the primary topic of discussion for the upcoming 24 hours, especially tomorrow’s jobs report, where markets seem to be bracing themselves for a weaker-than-expected reading considering the declines in the sub-components, namely, ISM Non-Manufacturing and Manufacturing PMI.
