Gold not able to capitalise further on the dollar’s vulnerability
Gold is down 0.2% on the day as the yellow metal pares back some of its advance yesterday, failing to really build much on the dollar’s recent softness in general.
At the highs last week, price stalled near $1,800 as buyers were not able to find enough conviction to break that with the 100-day moving average (red line) also offering some added resistance, seen now @ $1,800.45.
Despite the dollar looking vulnerable from a technical perspective, the lack of investor appetite in gold is still something that is denting optimism in the precious metal for now.
Gold saw its biggest one-day reduction in ETF holdings yesterday since November 2016, taking overall ETF holdings to its lowest level since 19 May 2020.
As long as that continues to stay the course, there is the propensity for gold to meet a reality check as the upside momentum looks to be stalling over the past week or so.