Gold declines on US Dollar strength post FOMC minutes, but COVID concerns cap losses. FTSE set for a weaker open as commodity stocks prepare to tank on USD strength & covid woes.

Gold falls post FOMC minutes, covid fears cap losses 


Gold is trading lower after buying picked up within the US Dollar following the discharge of the FOMC minutes. 


The minutes showed that the US financial institution could start tapering bond purchases later this year. there have been also some policy makers who preferred next year as a starting date but the market decided to not specialise in that. 


Evidence that the market is now convinced that the Fed is comfortable with tapering support was seen in follow through buying of the US Dollar in Asia overnight & heading into the ecu open. 


Still persistent COVID concerns appear to possess prevented investors from placing aggressive sell bets within the valuable . 


Where next for Gold? 


Gold rebounded off the 4-month low of $1679 on August 9. However, the recovery saw resistance at the 50 dam which capped any move higher. 


The price trades below its 50 & 100 sma and below its descending trendline dating back to early June in an establish bullish trend. 


The 50 sma also crossed below the 100 sma during a bearish signal. Furthermore, the RSI has reversed direction and is in bearish territory pointing southwards suggesting there might be more downside to return . 


Support are often seen at 1750 the June low, before 1730 the April low before bears could look to retest 1679 the August low. 


On the upside any recovery must close above the 20 sma at 1788 so as to check the 50 sma at 1795 and therefore the ascending trendline at 1813. 


 Where next for the FTSE? 


The FTSE’s rebound across the primary half the week stalled and is reversing. the worth trades firmly below its 10 day descending trendline and has fallen below its 50 & 20 sma on the 4 hour chart. The 20 sma has also fallen below the 50 sma during a bearish signal. 


The RSI is indicative of further losses whilst it remains out of oversold territory. 


The price has fallen below horizontal support at 7090 the low August 9 and is heading towards 7000 key psychological level and 6995 the swing low July 30 and 6930 the low July 27. 


On the flipside, resistance are often seen at 7080 the August 9 low and 7111 the August 17 low before 7150 the 20 sma.