Gold prices continued to move south during the Asian trading session on Tuesday, continuing to show a negative inclination. The yellow metal was under pressure and not able to hold onto its post-Fed gains. Even though it was hovering around multi week highs, it couldn’t find meaningful selling pressure.
During the entire session, gold prices showed a curious lack of bearish conviction. Analysts noted that prices stayed flat despite being under the old highs. Instead, they questioned bulls’ conviction on the market’s trajectory for the apparent absence of serious selling pressure. The use case is reflective of a very jittery trader mentality, perhaps even a willingness to wait for more obvious signals before executing any major changes.
Falling gold prices have held the red below that multi-week peak, indicating difficulty, or unwillingness, to develop upside momentum. This bull market run up continues to baffle investors trying to get a read on what’s driving the market. Market participants lack conviction to drive prices down. Their unwillingness to chase through selling indicates they require greater catalysts to push the market lower.
The present market sentiment nicely describes the times. It is an environment where traders are looking at a combination of technical indicators alongside wider macroeconomic factors. This continued inverse bias as seen in gold price is a sign of the troubling concern lurking beneath the surface among investors. Analysts say this may be related to volatility in demand overall and geopolitical uncertainty that has marked recent trading days.
“Gold price keeps the red below multi-week high; lacks follow-through selling.” – www.fxstreet.com