Gold price bullish bias lingers, overbought RSI warrants caution for bulls<\/span><\/h2>\nGold price trades on a flat note on the day. The precious metal keeps the bullish vibe on the daily timeframe, characterized by the price holding above the key 100-day Exponential Moving Average. Nonetheless, the 14-day Relative Strength Index (RSI) moves above the 70.00 mark, indicating overbought conditions and warranting some caution. This suggests that further consolidation or a temporary sell-off is on the cards.\u00a0<\/span><\/p>\nOn the bright side, the immediate resistance level to watch is $3,355, the upper boundary of the Bollinger Band. Sustained trading above the mentioned level could pave the way to the $3,400 psychological level.\u00a0<\/span><\/p>\nIn the bearish case, the low of April 18 at $3,230 acts as an initial support level for XAU\/USD. Further south, the next contention level is seen at $3,105, the low of April 2.\u00a0\u00a0<\/span><\/p>\n\n
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Risk sentiment FAQs<\/h2>\n\n
<\/p>\n
\nIn the world of financial jargon the two widely used terms \u201crisk-on\u201d and \u201crisk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a \u201crisk-on\u201d market, investors are optimistic about the future and more willing to buy risky assets. In a \u201crisk-off\u201d market investors start to \u2018play it safe\u2019 because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.<\/p>\n<\/section>\n
<\/p>\n\nTypically, during periods of \u201crisk-on\u201d, stock markets will rise, most commodities \u2013 except Gold \u2013 will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a \u201crisk-off\u201d market, Bonds go up \u2013 especially major government Bonds \u2013 Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit. <\/p>\n<\/section>\n
<\/p>\n\nThe Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are \u201crisk-on\u201d. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.<\/p>\n<\/section>\n
<\/p>\n\nThe major currencies that tend to rise during periods of \u201crisk-off\u201d are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world\u2019s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them \u2013 even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.<\/p>\n<\/section><\/div>\n<\/p><\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"
Gold price edges lower in Friday\u2019s Asian session, pressured by profit-taking.\u00a0 Mounting uncertainty about tariffs and recession fears could boost the safe-haven flows, supporting the Gold price.\u00a0 Fed\u2019s Daly is set to speak later on Friday.\u00a0 The Gold price (XAU\/USD) holds steady on Friday after retreating from an all-time high of $3,358 as investors book […]<\/p>\n","protected":false},"author":2,"featured_media":389691,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,351,257,484,255,250,333,252,247,253,249,5212,256,254,485],"class_list":["post-389690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-commodities","tag-cryptocurrency","tag-gold","tag-gta","tag-looks-rare","tag-macroeconomics","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-wallet","tag-wordpress","tag-xauusd"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/389690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=389690"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/389690\/revisions"}],"predecessor-version":[{"id":389692,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/389690\/revisions\/389692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/389691"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=389690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=389690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=389690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}