Gold has continued to negotiate with a strong bearish bias as the fare of rates gained impulse, while the expectations of fed cuts were reduced in terms of the temporality of the next cut and its magnitude. The gold was last at levels of 3174.52, the FX analysts of OCCBC, Frances Cheung and Christopher Wong point out.
Intact downward risks
“The other factor could have been the misinformation about gold being reclassified as HQLA of level 1 under Basel III from July 1 (which could have partially contributed to the previous increase in the price of gold). Level 1 refers to capital rules, while HQLA is a function within the liquidity LCR and NSFR rules “
“As it is, gold is already an asset of level 1 under the capital agreements of Basel, but gold is not scheduled to be reclassified as HQLA level 1. Until now, no ad Fed cuts They are further reduced and/or the decala accelerates. “
“The bearish impulse in the daily chart remains intact while the RSI fell. Risks down intact. Support in 3150 (DMA of 50), levels of 3050 (fibonacci setback of 50% of the minimum to the maximum of 2025). Resistance in 3230, 3288 (23.6% of Fibonacci).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
