February has NOT been month for the gold bugs.

As you’ll be able to see, spot gold (XAU/USD) has been in a downtrend all month after hitting resistance on the $1,950 zone in early February.

The pair then traded in an observable downtrend a while within the second week whereas it revered a descending development line resistance.

Quick ahead to at this time and the development line resistance stays intact and XAU/USD is having hassle getting consumers above the consolidation at $1,820.

Spot Gold (XAU/USD) 1-Hour Chart by TradingView

Will XAU/USD lengthen its downtrend?

The U.S. gained’t be printing top-tier financial stories at this time so XAU/USD’s subsequent path will doubtless rely on what number of extra merchants will alter their Fed rate of interest expectations greater.

Recall that latest U.S. information releases and Fed member speeches have satisfied markets to regulate their anticipated Fed rate of interest “peak” from 4.8% in early February to about 5.4%.

Greater U.S. rates of interest makes the non-yielding gold much less engaging as a safe-haven in comparison with the curiosity rate-yielding USD.

For now, technical indicators favor extra promoting with each the 1-hour chart’s 100 and 200 SMAs pointed decrease. Stochastic has additionally simply left its “overbought” zone so oscillator watchers have a little bit of room to promote.

After which there’s the $1,820 earlier assist space that traces up with the 38.2% Fibonacci retracement of final week’s downswing. Extra importantly, it’s presently holding as resistance for XAU/USD.

Except we see sentiment-changing catalysts, XAU/USD might be headed for its weekly lows close to the $1,800 psychological stage.

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails danger. Please learn our Threat Disclosure to ensure you perceive the dangers concerned.