After paring losses, gold prices closed Wednesday on a somewhat flat note. Investors sought risk assets which saw the equities pushing to fresh all-time highs. Expectations of a Fed rate cut led to increased risk appetite. However, in the short term, gold is likely to remain in favor amid easy monetary policy.
Is Gold Due to Correct Lower?
The recent price action in gold saw a retest to the previous six-year high before closing somewhat bearish. The Stochastics oscillator on the daily chart signals a lower high, indicating a possible move to the downside. Price will need to close below 1404.00 in order to confirm the downside bias. The next downside target is seen at 1354.00.
