Gold price extends its corrective decline on Monday and demand for the safe haven for the US dollar continues to decline in the risk aversion environment, reversing half of the previous week’s gains. Well, in such an environment, what points do analysts share as levels to watch?
Developments affecting gold price
As we previously reported , investors are worried about the global increase in Delta coronavirus variant events and its impact on the economic recovery rate. According to gold analyst Dhwani Mehta, the markets seem to be in “sell everything mode” and rely only on the last reserve currency, the US dollar, as in every time of panic and uncertainty. In the midst of this, mixed US Retail Sales and Consumer Sensitivity information has spurred inflation risks on growth as the US Federal Reserve prepares for monetary policy normalization.
According to the analyst, “Indian gold, which further dampened the sentiment around the gold price, fell after the rise in local prices reduced metal demand. Sales started after the gold price exceeded the one-day SMA200 reinforcement and closed the week below this level. Going forward, the gold price risks deeper declines due to the lack of healthy reinforcement levels.”
Gold price: Valuable levels to watch according to the analyst
According to Mehta, the Technical Confluences Detector shows that the gold price has taken off all the valuable anchors as sales continue unfailingly at a small four-hour high of $1,796 on the SMA100. “Further down is the strong support at $1,792,” the analyst says. He also adds, “The final defensive limit for golden bulls is seen at $1,790,.”
On the other hand, according to the analyst, immediate resistance is aligned around $ 1,809. Gold buyers need to find strong support above $1813 for more recovery profits. According to value metals analyst Dhwani Mehta, the goal of gold bulls is currently $1,815. An ounce of gold is changing hands at $1,800.