Gold Technical Analysis: Dollar Strength May Invite Buying

Analysts say "raising concerns" about Evergrande are raising concerns about a larger economic crisis in China that could put downward pressure on many goods that China consumes. Evergrande threatened to default on debts of more than $300 billion, causing sharp losses in the US and global financial markets at the beginning of this week's trading.

Among the big questions for financial markets and investors is if this could be China's "Lehman moment" - one that leads to a situation with more systemic risks than China realizes, and if the country will be able to contain the fallout from this crisis. Analysts said yes, referring to the bankruptcy of the global financial services company that contributed to the 2008 financial crisis.

Technical analysis of gold

The bulls need to break through the psychological resistance of $1800 in order to control gold's performance.

The price of gold will be affected today by the strength of the US dollar and risk appetite, in addition to the decisions of the Swiss Central Bank, the Bank of England, and the readings of the Industrial Purchasing Managers’ Index and the Services PMI from the Eurozone, Britain and the United States of America.

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