Daily Price Outlook

• Gold closed below the $1960.00 level, suggesting increased negative pressure and a potential target of $1925.35 in upcoming sessions.
• A bearish bias is expected today, with support from trading below the EMA50. Breaking above $1960.00 could reestablish a bullish trend with a target of $2000.00.
• The projected trading range for today is between $1925.00 support and $1965.00 resistance. The overall trend forecast is bearish.

The price of gold closed below the $1960.00 level yesterday, indicating a potential increase in negative pressure in the upcoming sessions as it heads towards the target level of $1925.35.

Consequently, a bearish bias is anticipated for today, supported by trading below the EMA50. However, if the price manages to break above the $1960.00 level and hold above it, it could reactivate the bullish trend scenario with the next target set at $2000.00.

The projected trading range for today is expected to be between the support level of $1925.00 and the resistance level of $1965.00.
Overall, the forecasted trend for today is bearish.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Buy Limit 1960

Stop Loss – 1950

Take Profit – 1980

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$2000/ -$1000

Profit & Loss Per Micro Lot = +$200/ -$100

Daily Price Outlook

Rising open interest and volume contributed to the sharp increase in gold prices on Thursday, which paves the way for the recovery to continue very shortly. In opposition to that, the June high just over the $1980 per ounce Troy mark means the next goal for bulls.

A slight increase in the yields on US government bonds helps the US dollar (USD) draw some dip buyers on the final day of the week and somewhat undo the overnight decline that sent it to its lowest level since May 24.

This, in turn, is considered to be a significant element acting as a headwind for the price of gold expressed in US dollars. However, the downside is still eased due to a generally weaker risk tone favoring the safe-haven XAU/USD.

The market’s mood is still unsafe due to mounting concerns about a global economic slowdown, stoked by today’s weaker-than-expected inflation numbers from China.

According to the National Bureau of Statistics, China’s Consumer Price Index (CPI) declined by 0.2% in May, while the Producer Price Index (PPI) experienced its most significant loss since February 2016 and dropped 4.6% YoY.

This further means that the second-largest economy in the world’s post-COVID recovery is behind.

In addition, the growing accord that the Federal Reserve (Fed) won’t raise interest rates at its meeting on June 13–14 restrains USD bulls from making risky bets and supports the price of non-yielding gold. The market has already completely priced in an impending pause in the US central bank’s rate-hike cycle.

The chances were confirmed by US data released on Thursday, which showed that first-time claims for unemployment insurance rose to a 20-month high last week.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Yesterday, the price of gold closed below the $1960.00 level, suggesting a potential increase in negative pressure in the upcoming sessions. As a result, a bearish bias is expected for today, especially considering that the price is trading below the EMA50.

However, if the price manages to break above the $1960.00 level and hold above it, it could signal a reactivation of the bullish trend, with the next target set at $2000.00.

For today, the projected trading range is anticipated to be between the support level of $1925.00 and the resistance level of $1965.00. Taking all factors into account, the overall trend forecast for today is bearish.

Daily Price Outlook

• Gold is trading around the $1943 level after bouncing off support at $1939. It attempted to break above $1948 but is currently consolidating, with a bearish sentiment indicated by the RSI and MACD indicators.
• A break below $1939 could lead gold to target $1932 and continue the downward trend towards $1923 and $1990.
• Surpassing $1948 may push gold towards the next targets at $1955 or $1958. Monitoring the price action around $1948 is crucial for determining the potential continuation of the downward trend.

On Thursday, the price of gold is trading in a range around the $1943 level after bouncing off the support level at $1939. It made an attempt to break above $1948 but failed to sustain above this level and is currently consolidating.

The overall trading sentiment for gold appears to be bearish as indicated by the relative strength index (RSI) and moving average convergence divergence (MACD) indicators.

The RSI has a value of 38, suggesting selling pressure, while the MACD is holding around -3. Additionally, the 50-day exponential moving average is acting as resistance around the $1950 level, indicating a stronger bearish sentiment.

If gold breaks below the $1939 level, it could potentially reach the target of $1932 and continue its downward trend towards $1923 and $1990. On the other hand, if gold surpasses the $1948 level, the next target could be around $1955 or $1958.

Therefore, it is important to monitor the price action around the $1948 level as a break below this level may signal a continuation of the downward trend in the price of gold.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Above 1948

Stop Loss – 1958

Take Profit – 1931

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1640/ -$1026

Profit & Loss Per Micro Lot = +$164/ -$102

Daily Price Outlook

The price of gold (XAU/USD) attempted a recovery after falling to around $1,940.00. The precious metal’s price has risen due to a significant decline in the US Dollar Index (DXY), closing at $1,950.00. However, investors have had to remain vigilant amidst the overall volatility in the USD Index, which has been limited by a lack of clear catalysts.

S&P 500 futures have fully recovered from their losses and turned positive, signaling a rebound in risk appetite among market participants. Investors are starting to overlook concerns surrounding potential interest rate hikes by the Federal Reserve (Fed).

While the USD Index has found temporary support around 103.80, the current market optimism poses risks to its strength. Despite the recent short-term decline, the USD Index is expected to remain robust due to the anticipated hawkish stance of the Fed.

Following its failure to break above the critical resistance level of $1,950.00 during the European session, the price of gold (XAU/USD) has seen a significant drop.

The precious metal’s price had rallied significantly on the improved likelihood of the Federal Reserve (Fed) continuing its cycle of interest rate hikes and the conclusion of the corrective movement in the US Dollar Index (DXY).

Although S&P 500 futures have partially recovered from the losses observed in the Asian session, overall market sentiment remains cautious as investors worry about the Fed’s potential impact of further interest rate increases on the economic outlook.

Wednesday’s decline in gold prices was accompanied by rising open interest and volume, indicating a likely continuation of the short-term downtrend. In contrast, it suggests that gold may retest its recent lows around $1,930 per troy ounce.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

On Thursday, the price of gold is trading in a range around the $1943 level after bouncing off the support level at $1939. It made an attempt to break above $1948 but failed to sustain above this level and is currently consolidating.

The overall trading sentiment for gold appears to be bearish as indicated by the relative strength index (RSI) and moving average convergence divergence (MACD) indicators.

The RSI has a value of 38, suggesting selling pressure, while the MACD is holding around -3. Additionally, the 50-day exponential moving average is acting as resistance around the $1950 level, indicating a stronger bearish sentiment.

If gold breaks below the $1939 level, it could potentially reach the target of $1932 and continue its downward trend towards $1923 and $1990. On the other hand, if gold surpasses the $1948 level, the next target could be around $1955 or $1958.

Therefore, it is important to monitor the price action around the $1948 level as a break below this level may signal a continuation of the downward trend in the price of gold.

Daily Price Outlook

• Gold prices show volatility around the EMA50, maintaining a bearish trend with a focus on testing $1,945.20 and potential further decline to $1,913.15.
• The Stochastic indicator signals negativity, supporting the continuation of the bearish wave. A breach above $1,977.25 could indicate a bullish reversal.
• Today’s expected trading range is $1,940.00 to $1,977.00, with an overall bearish trend forecasted.

Gold prices remain volatile around the EMA50, lacking significant movement since yesterday. This maintains the bearish trend intact for the foreseeable future, with a focus on testing the initial level of $1,945.20.

A breakthrough at this level would unlock the path towards the next correctional level at $1,913.15.

The Stochastic indicator continues to provide negative signals, reinforcing the potential for a continued bearish wave. It’s important to note that breaching $1,977.25 would halt the anticipated decline and potentially initiate a bullish reversal.

For today’s trading, the expected range is between support at $1,940.00 and resistance at $1,977.00. The overall trend for the day is expected to be bearish.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below 1964

Stop Loss – 1972

Take Profit – 1949

Risk to Reward – 1: 1.88

Profit & Loss Per Standard Lot = +$1500/ -$800

Profit & Loss Per Micro Lot = +$150/ -$80

Daily Price Outlook

The Safe-Haven Gold price has successfully stopped its downward trend and has shown signs of recovery, hovering above the $1,960 mark. However, the stability witnessed in gold prices can be attributed to the cautious sentiment among investors, who anxiously anticipate the upcoming Federal Reserve meeting.

This cautious stance has boosted the demand for safe-haven assets, particularly gold, and consequently played a significant role in its recent price gains.

Weak US Economic Data Supports Gold

The safe-haven gold received some support earlier in the week, thanks to weak economic data from the United States. This data caused the US dollar to decline, leading to speculation that the Federal Reserve might face challenges in implementing additional interest rate hikes.

Although, the US dollar managed to recover its strength as uncertainty surrounding the Federal Reserve’s future actions persisted.

Despite indications of a slowdown in the US economy, the presence of continued high inflation and a strong labor market intensified the pressure on the central bank to implement a stricter monetary policy.

Thus, the weak economic data and speculation about the Federal Reserve’s challenges had a positive impact on the safe-haven gold price initially. Although, the recovery of the US dollar was seen as one of the key factors that cap further gains in the gold price.

Fed’s Expected Longer-Term Rate Hike Prospects Dampen Gold Outlook

If the Federal Reserve chooses to end its current cycle of interest rate hikes, it is expected that interest rates will remain high for a prolonged period. Hence, this delivers a challenge for non-yielding assets like gold.

Consequently, the safe-haven appeal of gold has been limited in recent weeks, despite negative data impacting riskier assets. Whereas, the prospect for a US and European recession later in the year could eventually increase the demand for gold.

Economic Indicators and Market Data to Monitor

Looking forward, the market participants will closely monitor key economic indicators from major economies. Australia and Japan are scheduled to release their first-quarter GDP data, providing insights into the health of their respective economies. Besides this, Chinese trade and inflation data are also expected to be released this week.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold prices continue to exhibit volatility, showing little significant movement since the previous day. This confirms the ongoing bearish trend, with a primary focus on testing the initial level of $1,945.20. A breakthrough at this level would pave the way for further correction towards the subsequent level at $1,913.15.

The Stochastic indicator remains in negative territory, signaling the potential for a sustained bearish wave. It’s worth noting that surpassing the $1,977.25 level would interrupt the expected decline and potentially trigger a bullish reversal.

In today’s trading, the projected range is anticipated to be between support at $1,940.00 and resistance at $1,977.00. Overall, the trend for the day is expected to remain bearish.

Daily Price Outlook

The price of gold struggles to capitalize on a minor uptick above the 100-day simple moving average, remaining within a narrow trading range throughout the European session on Tuesday. Currently hovering just above the $1,960 level, the XAU/USD is only a few cents away from a two-month low reached last week.

The demand for the US dollar limits the gains for gold. The USD, which attracts some buying interest after a decline following disappointing US macroeconomic data, becomes a significant factor weighing on the gold price.

Concerns about the slowdown in the largest economy are fueled by a poll by the Institute for Supply Management (ISM) indicating a slight increase in economic activity in the US services sector in May. The Prices Paid sub-component reaching a three-year low further supports the anticipation of a pause in the Federal Reserve’s rate-hiking cycle.

The gold price is oscillating around $1,960 amid mixed reactions to the Fed’s June policy. During the early London session, the precious metal’s price remains uncertain as investors hold differing opinions on the Fed’s decision regarding interest rates at its upcoming monetary policy meeting in June.

US banks, uncertain about extending loans, aim to maintain the quality of their asset portfolios in an unstable environment. The gold price is hindered from making significant movements due to mixed responses to the Fed’s June policy.

At the same time, declining factory activity and below-average service activity suggest a temporary pause in policy tightening to observe the impact of previous rate increases, higher payroll additions in the US labor market support the need for further rate hikes.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

On Tuesday, the price of gold is trading sideways around the $1959 level, showing difficulty in surpassing the resistance at $1964. It is currently finding support around $1958, which coincides with the 23.6% Fibonacci retracement level and the 50-day exponential moving average on the two-hour timeframe.

If the price breaks below $1958, it may encounter further support levels at $1954 and $1951, which correspond to the 38.2% and 50% Fibonacci retracement levels. Continued downward momentum could push the gold price towards the 61.8% level at $1948.

Monitoring the price action around the $1964 level is crucial, as a break below this level could lead to further downside. Conversely, a breakthrough above $1964 could create opportunities for buying, with potential targets at $1972 or $1980.

Daily Price Outlook

• Gold is currently trading sideways around $1959, unable to break above the resistance at $1964.
• The $1958 level is acting as support, with the 23.6% Fibonacci retracement level and the 50-day exponential moving average providing additional reinforcement.
• If the price breaks below $1958, it could find further support at $1954 and $1951, corresponding to the 38.2% and 50% Fibonacci retracement levels.

On Tuesday, the price of gold is trading in a sideways pattern around the $1959 level, unable to break through the resistance at $1964. Currently, it is finding support around the $1958 level, which aligns with the 23.6% Fibonacci retracement level and the 50-day exponential moving average on the two-hour timeframe.

On the downside, a break below $1958 could expose gold to further support levels at $1954 and $1951, corresponding to the 38.2% and 50% Fibonacci retracement levels. Continued downward momentum may push the gold price towards the 61.8% level at $1948.

Therefore, it is important to monitor the price action around the $1964 level, as a break below this level could lead to further downside. On the other hand, a breakthrough above $1964 could provide room for buying opportunities, targeting levels at $1972 or $1980.

GOLD Price Chart - Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below 1960

Stop Loss – 1967

Take Profit – 1951

Risk to Reward – 1: 1.29

Profit & Loss Per Standard Lot = +$900/ -$7000

Profit & Loss Per Micro Lot = +$90/ -$70

Daily Price Outlook

• Gold experienced a sharp decline on Monday, trading near the $1943 level.
• The double bottom support level at $1953 has been broken, now acting as a significant resistance for gold prices.
• The 50-day exponential moving average is also acting as resistance around $1953, indicating a potential continuation of the downward trend, with potential support around $1932.

On Monday, the price of gold witnessed a sharp decline, trading around the $1943 level. On the four-hour timeframe, gold broke below the double bottom support level at $1953, which is now expected to act as a significant resistance for gold prices.

The 50-day exponential moving average is also acting as resistance around the $1953 level, further indicating a potential continuation of the downward trend, with potential support around the $1932 level.

The 50-day exponential moving average suggests selling pressure, while the RSI and MACD indicators are in oversold territory. Therefore, the $1953 level is likely to be a pivot point for gold prices today, with investors potentially considering selling opportunities at this level.

Alternatively, if gold breaks above the $1953 level, the next resistance levels to watch for are around $1960 or $1975.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Limit 1950

Stop Loss – 1965

Take Profit – 1932

Risk to Reward – 1 : 1

Profit & Loss Per Standard Lot = +$1711/ -$1586

Profit & Loss Per Micro Lot = +$171/ -$158

Daily Price Outlook

Gold price failed to stop its downward rally and experienced a continuous decline for the second consecutive day on Monday, ultimately reaching just above the $1,940 level. However, the downward trend can be attributed to the ongoing uncertainty surrounding the Federal Reserve’s upcoming decision on interest rates.

It is worth noting that the recent release of better-than-expected U.S. nonfarm payroll data for May has increased the possibility of the Fed adopting a more aggressive stance to control high inflation.

However, some Fed officials have suggested that interest rates might stay relatively high, which negatively affects assets like gold. Besides, the strength of the US dollar, driven by the expectation of higher interest rates, has also contributed to the downward pressure on gold prices.

The Impact of the US Dollar’s Rebound on Gold Prices: A Dollar-Denominated Relationship

The recent rebound of the US Dollar has adversely affected the price of Gold. Gold, being generally denominated in US Dollars, tends to decline when the US Dollar strengthens.

The strength of the US Dollar can be attributed to the release of mixed employment data from the United States. In May, the Nonfarm Payrolls report showed a higher-than-expected addition of 339,000 jobs, signaling potential continuation of the Federal Reserve’s hawkish stance to combat high inflation.

As a result, US Treasury bond yields are increasing, further bolstering the strength of the US Dollar and exerting downward pressure on the price of Gold.

Gold Prices Under Pressure as Risk-On Sentiment Prevails

The ongoing risk-on market sentiment continues to exert downward pressure on gold prices. Investors are displaying a preference for riskier assets, which diminishes the appeal of safe-haven assets such as XAU/USD. As a result, the shift in sentiment has weakened the demand for gold, thereby keeping its price under pressure.

Investors are currently optimistic about the US government’s prospects of passing legislation to raise the debt ceiling, effectively averting a potential default. Additionally, an upswing in services activity in China, as indicated by a recent survey, has contributed to positive sentiment in equity markets. These factors could limit gains in gold prices, warranting caution among aggressive bullish traders.

Traders are closely monitoring the impact of the US ISM Services PMI and bond yields on the US dollar and gold. The prevailing risk sentiment will also play a pivotal role in determining short-term trading opportunities for XAU/USD.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold experienced a significant decline on Monday, with prices hovering around the $1943 level. On the four-hour chart, gold breached the support level of the double bottom pattern at $1953, which is now anticipated to act as a substantial resistance level for future price movements.

Moreover, the 50-day exponential moving average is serving as resistance around the $1953 mark, further indicating the potential continuation of the downtrend. Potential support can be found around the $1932 level.

The presence of the 50-day exponential moving average suggests selling pressure, while the RSI and MACD indicators indicate oversold conditions. As a result, the $1953 level is expected to function as a pivotal point for gold prices today, with traders possibly considering selling opportunities at this level.

However, if gold manages to break above the $1953 level, the next resistance levels to monitor are approximately $1960 or $1975.