Gold Down On Overbought Readings

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Gold Down On Overbought Readings

Gold Down By 0.6% On Overbought Readings

decline was seen in the Gold prices during Friday's Asian session... It appears to be an aftermath of the recent NFP report, which has further delayed the prospects of rate cuts in the USA.

Additionally, the technical reading of the spot gold also shows that the precious metal is now in the overbought zone. This is a sign that a corrective method will likely be used in the spot Gold.

However, there are still many signs that hint at Gold's upside, given its safe-haven demand and current geopolitical environment.

Spot Gold &Amp;Amp; Gold Futures Go Down

The spot gold lost 0.6% of its value and touched $2277.10 after hitting the high located at $2305. Similarly, the Gold futures contract for June also reached $2295.50 after a loss of -0.6%.

Another key factor which is putting pressure on the Gold prices is the recent recovery drive seen in the US Dollar. As for what's fueling the upside of USD, it is the comments from the Fed officials.

If we look at the Gold situation purely from a technical point of view, the RSI indicator shows overbought readings. As a result, traders can expect profit-taking in the yellow metal during the next few days.

It seems that profit-taking has already started in the yellow metal after the release of the NFP report. The report was positive for the US economy, which means a stronger USD and a weak Gold.

After the NFP, many other metals also took a nosedive, including the Platinum futures, which have lost around 1.1%. Similarly, a -2.2% change was also seen in the Silver futures.

Copper, which is also an important industrial metal, also came under profit-taking after touching its 15-month highs. The upside seen in the copper industry was driven by China's demand, and the copper supply will remain weak in the near term.

Over all, the sentiment regarding the metal market have gone down, especially after the release of the NFP report.

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