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.

Daily Price Outlook

During the early European session, the price of gold (XAU/USD) is making efforts to surpass the $1,980.00 mark. The precious metal has gained additional momentum, with expectations that the USD Index will continue its downward trend in the absence of signs of economic recovery.

Following the approval of the US debt ceiling bill by Congress and the reduced likelihood of another interest rate hike by the Federal Reserve (Fed), S&P 500 futures recorded notable gains in the Asian market.

The US Dollar Index has retested its weekly low of 103.45 as Fed officials lean towards postponing the June monetary policy meeting due to the ongoing decline in domestic industrial activity in the US.

Early estimates from CME Group indicate a decline in open interest in gold futures markets on Thursday, with a decrease of approximately 1.5K contracts. Similarly, trading volume has also decreased for the second consecutive session, with a decline of over 36K contracts.

On Thursday, gold prices continued their upward trajectory and came close to reaching the desired range of $1,980 per troy ounce. However, the upswing was accompanied by declining open interest and volume, indicating a potential halt to the rally and the possibility of a pullback to around $1,930.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

The price of gold is currently experiencing fluctuations after rebounding from the triple bottom support level around $1,954. It has successfully surpassed the resistance level at $1,970 and is currently trading around $1,987. The next immediate resistance is expected around $1,985, with the possibility of reaching target levels at $1,990 or $2,000.

When analyzing the leading and lagging technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), all indicators are showing positive signals. The 50-day exponential moving average is also providing significant support near the $1,970 level, further strengthening the bullish sentiment for gold.

However, it is crucial to closely monitor the key resistance level at $1,995. A failure to break through this level could result in a reversal and potentially lead to a bearish trend towards $1,975 or $1,970.

On the other hand, if the triple top resistance level at $1,985 is surpassed, it could provide further upward momentum, potentially pushing the gold price towards the $2,000 mark.

It’s important to note that market participants should pay close attention to the upcoming US nonfarm payroll data and unemployment rate, as it can have a significant impact on the price movement of gold.

Daily Price Outlook

• Gold price has experienced volatility, bouncing off the triple bottom support and breaking through the $1,970 resistance level.
• Immediate resistance is expected around $1,985, with potential targets at $1,990 and $2,000.
• Technical indicators are favoring a bullish outlook, with support from the 50-day exponential moving average.

The price of the precious metal gold is currently experiencing some volatility after bouncing off the triple bottom support level around $1,954. It has now broken through the $1,970 resistance level and is currently holding around $1,987. In terms of immediate resistance, it is likely to be encountered around the $1,985 level, with the potential to reach the next target levels of $1,990 or $2,000.

Looking at the leading and lagging technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), all indicators are holding within a favorable zone. The 50-day exponential moving average is also providing significant support around the $1,970 level, further favoring the bullish outlook for gold.

However, it is important to monitor the key resistance level around $1,995, as a failure to break through this level could trigger a reversal and potentially lead to a bearish trend towards the $1,975 or $1,970 level.

On the other hand, if the triple top resistance level at $1,985 is violated, it has the potential to further propel the gold price towards the $2,000 level. It is important to note that market participants should closely monitor the upcoming US nonfarm payroll data and unemployment rate, as it could have a significant impact on price action.

GOLD Price Chart – Source: Tradingview

GOLD (XAU/USD) Trade Idea

Entry Price – Buy Above 1975

Stop Loss – 1962

Take Profit – 2000

Risk to Reward – 1 : 1.92

Profit & Loss Per Standard Lot = +$2500/ -$1300

Profit & Loss Per Micro Lot = +$250/ -$130

Daily Price Outlook

• Gold is showing slight bullish sentiment around the $1,962 level after failing to break through $1,970 resistance.
• A reversal from the $1,975 level indicates weakening bullish bias and potential dominance by sellers.
• Immediate support is around $1,956, with further targets at $1,950, $1,940, or $1,936. Breaking above $1,970 may lead to targets around $1,985 or $1,995.

The price of the precious metal gold is currently showing slight bullish sentiment around the $1,962 level after failing to break through the resistance at $1,970. While it briefly reached the $1,975 level on the four-hour timeframe, it reversed and fell below $1,970, settling around $1,965.

This indicates a weakening bullish bias and the potential for sellers to gain dominance, leading to a decline in the price of gold.

On the downside, gold has immediate support around $1,956, and a break below this level could push the price towards $1,950. Further bearish movement may expose the next support levels at $1,940 or $1,936.

Conversely, if gold manages to break above the $1,970 level and close above it, the next target levels could be around $1,985 or $1,995.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below 1965

Stop Loss – 1980

Take Profit – 1944

Risk to Reward – 1 : 1.40

Profit & Loss Per Standard Lot = +$2100/ -$1500

Profit & Loss Per Micro Lot = +$210/ -$150

Daily Price Outlook

Gold Price (XAU/USD) failed to prolong its winning streak and recently experienced a decline after a brief period of upward movement. Although it initially gained some ground, reaching its weekly high. However, the cautious market sentiment, along with the anticipation of upcoming data and events, has posed challenges to the bullish momentum of gold.

On the other hand, the positive China Caixin Manufacturing PMI is expected to support gold prices and prevent significant declines as China is one of the world’s largest consumers of gold, and any positive economic data from the country can increase the demand for the precious metal.

Vote on US Debt Ceiling and Its Impact on Gold Prices

However, the ongoing vote in Congress to raise the U.S. debt ceiling has remained the primary focus. The House of Representatives has successfully approved the bill. It is now set to proceed to the Senate for the next round of voting. Thus, the impact of this news on gold prices is meaningful.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

The price of gold is currently demonstrating a mild bullish sentiment near the $1,962 level, after encountering resistance at $1,970. Although it briefly reached $1,975 on the four-hour timeframe, it reversed course and dropped below $1,970, settling around $1,965.

This suggests a weakening of the bullish bias and the potential for sellers to gain control, leading to a decline in the gold price.

On the downside, gold finds immediate support around $1,956, and a breach below this level may push the price towards $1,950. Further downward movement could expose the subsequent support levels at $1,940 or $1,936.

On the other hand, if gold successfully breaks above the $1,970 level and closes above it, the next target levels to watch for are approximately $1,985 or $1,995.

Daily Price Outlook

• Gold shows a slight bullish bias after rebounding from the key support level at $1940.
• A descending trendline near $1965 could pose as a significant resistance level.
• Key levels to watch are $1950 for potential upside continuation and $1940 for strong support.

The precious metal gold is currently trading with a slight bullish bias after rebounding above the key support level of $1940. This level has proven to act as a reliable support, aligning with our previous forecast.

Currently, there is a descending trendline that could provide significant resistance around the $1965 level. If gold manages to break above this level, the next immediate resistance is likely to be encountered at $1971.

Conversely, if gold slips below the $1970 level, the next target could be the resistance level at $1984. Looking at our technical indicators, both the RSI and MACD indicators and the 50-day exponential moving average suggest potential bullish continuation.

It is important to monitor the $1950 level as a possible breakout could lead to further upward movement. On the downside, strong support is expected around the $1950 level, while the major support level is at $1940.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Buy Above 1954

Stop Loss – 1930

Take Profit – 1989

Risk to Reward – 1 : 1.46

Profit & Loss Per Standard Lot = +$3500/ -$2400

Profit & Loss Per Micro Lot = +$350/ -$240

Daily Price Outlook

The price of Gold (XAU/USD) was unable to extend its successful run, losing some momentum around the $1,950 mark. Although it initially ascended to reach an intraday high, these gains were fleeting as it subsequently retreated back to the $1,950 level. This decrease can be linked to the rising US dollar, which found support from several factors.

In addition, the risk-on market sentiment, bolstered by optimism surrounding the agreement on the US debt ceiling, further lessened the allure of gold as a safe-haven asset. On a brighter note, amid mixed US data and disappointing activity numbers from China, gold prices may find some support. These elements might help curb significant dips in gold prices by influencing the overall market sentiment.

Looking ahead, the market is eagerly waiting for further details concerning the potential increase of the U.S. debt ceiling. If the US Republicans thwart its extension, it could trigger a market shock. In such scenarios, investors typically gravitate towards safe-haven assets like gold. Consequently, the demand for gold may escalate, and buyers are optimistic that gold prices will ascend since it is deemed a reliable gauge of market sentiment and a secure investment during periods of uncertainty.

China’s Manufacturing PMI Contracts in May, Services PMI Beats Expectations

China’s official Manufacturing Purchasing Managers’ Index (PMI) for May registered at 48.8, dropping below the preceding month and falling short of market expectations. This reflects a contraction in the manufacturing sector as the index dipped beneath the 50 threshold.

Contrastingly, the Services PMI for May exceeded the April figures and outperformed expectations. The weaker Manufacturing PMI reading may lead to heightened market uncertainty, which often bodes well for gold prices.

Market observers are eagerly anticipating the disclosure of key economic indicators in the US, encompassing the Chicago PMI and JOLTS Job Openings statistics. These pieces of data, coupled with speeches from influential members of the Federal Open Market Committee (FOMC) and shifts in US bond yields, will notably sway the demand for the US dollar. Furthermore, the overall market sentiment will play a significant part in determining the trajectory of gold prices.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

The valuable commodity gold is currently exhibiting a minor upward trend after bouncing back above the pivotal support threshold of $1940, demonstrating the resilience of this level as forecasted previously.

Presently, a downward trendline may pose substantial resistance around the $1965 mark. If gold succeeds in breaching this level, it is likely to encounter the next immediate hurdle at $1971.

On the flip side, if gold dips below the $1970 mark, the next aim could be the resistance level at $1984. Examining our technical markers, the RSI and MACD indicators along with the 50-day exponential moving average imply a potential continuation of the bullish trend.

Keeping a close watch on the $1950 mark is crucial as a potential breakout could stimulate further ascent. On the decline, robust support is projected around the $1950 threshold, while the principal support level lies at $1940.

Daily Price Outlook

The XAU/USD (Gold) failed to stop its downward rally as it hit a two-month low, falling just below the $1,940 level. The selling pressure intensified during the early European session on Tuesday, resulting in the gold price hitting its lowest point since March 17. However, the downward trend could be attributed to the ongoing optimism surrounding the US debt ceiling and the strength of the US Dollar, which are playing a significant role in exerting pressure on the safe-haven appeal of XAU/USD.

US Lawmakers Reach Tentative Agreement to Raise Debt Ceiling, Impacting Investor Confidence and Gold Prices

In a significant development, US lawmakers have recently announced a tentative agreement to raise the debt ceiling, which currently stands at $31.4 trillion. This agreement holds immense importance as it helps prevent the possibility of a default by the world’s largest economy.

Consequently, investors are feeling more confident now and are inclined to invest in riskier assets, creating an overall positive market sentiment. Hence, this shift in investor behavior puts downward pressure on safe-haven assets like gold. Additionally, the recent strong performance of the US Dollar, reaching a two-month high, further contributes to the decline in gold prices.

US Dollar Gains Strength Amid Expectations of Rate Hike and Inflationary Pressures

Despite the prevailing risk-on sentiment in the market, the US dollar has been gaining strength. This can be attributed to a change in investors’ expectations, as they have started anticipating a higher probability of a 0.25% interest rate hike in June.

This change in sentiment was triggered by more hawkish comments made by officials from the Federal Reserve.

Additionally, recent data revealing an unexpected rise in the PCE Price Index, a key measure of inflation favored by the Fed, indicated that inflationary pressures continue. As a result, market expectations have solidified, with investors anticipating the Fed to maintain higher interest rates for a longer period. This has bolstered the US dollar and led to a decline in gold prices.

GOLD – Technical Outlook

The price of gold is currently facing a hurdle in surpassing the $1,970 level on Tuesday, leading to a period of consolidation. Support is being found around the $1,938 level, and a breach below this level has the potential to push gold towards the next support at $1,920 or possibly even lower at $1,915.

Upon analyzing the technical indicators, both the RSI and MACD show bearish signals. The RSI has dropped below the 50 level, indicating a strong selling pressure affecting gold prices. Additionally, the MACD is forming shorter histograms, further confirming the prevailing bearish sentiment.

Currently, the double bottom pattern provides significant support at $1,938. A successful break below this level would likely sustain the downward trend in gold.

On the four-hour timeframe, there exists a downward trend line acting as a prominent resistance for gold. If there is a breakthrough above this trend line, it suggests a possible continuation of the selling pressure below the $1,955 level.

It is crucial to closely monitor the $1,938 level. If gold remains above this level, there is a chance of a corrective bounce towards $1,955. However, breaching below $1,955 could indicate renewed selling interest in the precious metal.

• Gold is facing resistance at the $1,970 level, leading to a consolidation phase.
• Support is found at the $1,938 level, and a breakdown below this level may drive gold towards $1,920 or lower.
• Technical indicators like RSI and MACD are showing bearish signals, indicating selling pressure in gold prices.

On Tuesday, the price of gold is currently experiencing a challenge in surpassing the $1,970 level, leading to a consolidation phase. It is finding support around the $1,938 level, and a breakdown below this level could potentially drive gold towards the next support level at $1,920 or even lower towards $1,915.

Examining the technical indicators, both the RSI and MACD are showing signs of bearishness. The RSI has crossed below the 50 level, indicating a strong selling pressure in gold prices. Additionally, the MACD is forming shorter histograms, further confirming the bearish sentiment.

Currently, the double bottom pattern is providing significant support at the $1,938 level. If gold manages to break below this level, it is likely to continue its downward trend.

On the other hand, on the four-hour timeframe, there is a downward trend line acting as a major resistance for gold. A successful breakout above this trend line would suggest a potential continuation of the selling pressure below the $1,955 level.

Therefore, it is crucial to monitor the $1,938 level closely. If gold remains above this level, a corrective bounce towards $1,955 is possible. However, a breach below $1,955 could signify a renewed selling interest in the precious metal gold.

GOLD Price Chart – Source: Tradingview

GOLD - Trade Idea

Entry Price – Sell Below 1955

Stop Loss – 1975

Take Profit – 1915

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$4000/ -$2000

Profit & Loss Per Micro Lot = +$400/ -$200