Gold falls to its lows for the day
The topside move towards the end of last week stalled at the 30 April high just above $1,720 before price reversed to hug the key hourly moving averages above $1,700.
That was still the key battleground in gold up until a slight break under the key near-term levels in the past hour, and now we’re seeing sellers try to exert more dominance by pushing price under the $1,700 as the near-term bias turns more bearish.
Gold remains a rather tricky trade over the past few weeks but trading sentiment can largely be more defined by the narrowing wedge as outlined in the chart above.
The trendline resistance and trendline support stretching back all the way to April is what has been helping to see gold price action consolidate for the most part around $1,680 to $1,720 – resulting in a continued battle around the key hourly moving averages.
Dollar strength is what is playing out in the market right now and that is the push that is sending gold a little lower on the session. That said, price action is still within the realms of the narrowing wedge as defined above but sellers are in near-term control for now.