Daily Price Outlook

Gold price (XAU/USD) retreats from its intraday high of $1,941 as it fails to react positively to the initial agreement reached by US policymakers to avert a potential default. The Federal Reserve’s hawkish stance and uncertainty surrounding the passage of the agreement through Congress are factors influencing the decision of XAU/USD.

Despite the recent deal on extending the US debt limit, market concerns about a potential default persist, and some policymakers’ approval of the deal may be the reason behind this sentiment. However, the agreement faces opposition from both radical left and right factions due to the compromises made by each party.

To prevent a catastrophic default, the debt ceiling agreement needs to pass the House on Wednesday and the Senate by June 5. US Vice President Joe Biden has strongly urged both chambers to approve the agreement.

Given the significance of the US debt ceiling deal and the proximity of key short-term technical support, caution is advised for gold sellers ahead of the release of the US nonfarm payroll data.

Positive US economic data and expectations of a hawkish Federal Reserve stance also contribute to gold selling pressure. Upbeat readings in US PMIs, Q1 2023 GDP second estimate, durable goods orders, and the Core PCE Price Index indicate strength in the economy. Notably, US durable goods orders for April surpassed expectations, showing an increase of 1.1% compared to the predicted -1.0%.

Moreover, core durable goods orders, excluding aircraft, rose by 1.4% against the expected -0.2%. The Core PCE Price Index for the same month exceeded market expectations, reaching 0.4% MoM and 4.7% YoY.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold, the valuable metal, is currently exhibiting a slightly bullish sentiment following a significant level of support of around $1,940. Its current trading position is around $1,948, accompanied by a bullish candlestick pattern that suggests a dominant presence of buyers in the market.

On the four-hour timeframe, Gold has successfully surpassed the 50-day exponential moving average (EMA), which previously acted as resistance at $1,945.

If Gold manages to sustain candlestick closures above the 50-day EMA, it may present an opportunity for long positions, with the next resistance levels targeted at $1,960 or $1,965. The robust support at $1,940, if maintained, will be crucial, and any breach could lead to the next support level of around $1,927.11.

Alternatively, if Gold surpasses the $1,965 level, the next potential target lies at $1,975 or $1,984.

Daily Price Outlook

• Gold shows a slight bullish bias, trading around $1,948, after finding support at the $1,940 level.
• The bullish crossover in the DMA Series indicator and Gold crossing above the 50-day EMA supports a positive outlook.
• Long positions might be considered if Gold secures closures above the 50-day EMA, targeting resistance levels at $1,960 or $1,965. If Gold breaks the $1,965 level, the next target could be around $1,975 or $1,984.

Good morning everyone, Gold, the precious metal, currently demonstrates a slight bullish bias after finding substantial support around the $1,940 mark. As it currently trades around the $1,948 level, a bullish candlestick pattern has formed and the subsequent candlestick also indicates bullish tendencies, implying that buyers are currently controlling the market.

Furthermore, the DMA Series indicator has started forming histograms above zero and has completed a bullish crossover, which adds to the optimistic outlook for Gold. In the four-hour timeframe, Gold has managed to cross above the 50-day exponential moving average (EMA) that was previously providing resistance at the $1,945 level.

If Gold manages to secure candle closures above the 50-day EMA, we may see an opportunity to take a long position, targeting the next resistance levels of $1,960 or $1,965. If the robust support continues to hold at the $1,940 level and this level is breached, the next support could be found around the $1,927.11 mark.

Alternatively, if Gold breaks through the $1,965 level, the next target could potentially be around $1,975 or $1,984.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Buy Above 1941

Stop Loss – 1928

Take Profit – 1963

Risk to Reward – 1: 1.70

Profit & Loss Per Standard Lot = +$2200/ -$1300

Profit & Loss Per Micro Lot = +$220/ -$130

Daily Price Outlook

The price of gold (XAU/USD) has trimmed its weekly losses to the lowest levels in two months as investors await crucial US data and the resolution of the debt ceiling issue.

The recent bounce in the precious metal could be attributed to the US dollar pulling back from its multi-day high, as reports suggest that policymakers are still working to avoid a US default.

However, revised US real GDP and activity data support expectations of a hawkish stance from the Federal Reserve, despite mixed statements from officials recently, which are exerting downward pressure on XAU/USD.

Moving forward, the outcome of the US debt ceiling negotiations will be crucial in determining market movements as the early June deadline approaches.

Additionally, the April US Durable Goods Orders and the Core Personal Consumption Expenditure (PCE) Price Index, which is a favored inflation gauge of the Fed, will be closely watched for clearer direction.

The upcoming US durable goods orders report on Friday will be closely monitored. The April Durable Goods Orders data is expected to show a decline of 1.0%, contrasting with the previous increase of 3.2%. Any decrease in durable goods orders would significantly impact the core Consumer Price Index (CPI), which has exhibited notable resilience.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold witnessed a decline on Friday, with support found near the $1,936 level. Upon analyzing the 4-hour timeframe, it appears that gold might experience a bullish trend due to the formation of a doji candlestick pattern. Furthermore, the presence of an engulfing candlestick pattern suggests a weakening bearish sentiment and a potential shift towards a bullish sentiment.

The immediate resistance level for gold is anticipated to be around $1,955. If there is a surge in demand for precious metals, gold could surpass the $1,955 level and aim for the next resistance at $1,965. Conversely, support for gold is identified near the $1,935 level, and a breach below this level may lead to further decline towards $1,919.

It is crucial to monitor the US economy’s core durable goods orders and UoM consumer sentiment as they can influence the price movement of gold and the US dollar.

Daily Price Outlook

• Gold experienced a downward movement, finding support around $1,936.
• Resistance is expected around $1,955, with a possibility of further upside towards $1,965.
• Core durable goods orders and UoM consumer sentiment from the US economy are important factors to monitor for gold’s price action.

On Friday, the precious metal gold experienced a downward movement, finding support around the $1,936 level. Analyzing the 4-hourly timeframe, it appears that gold may see a bullish trend following the formation of a doji candlestick pattern. Additionally, an engulfing candlestick pattern indicates weakening of the bearish sentiment and a potential shift towards a bullish sentiment.

The immediate resistance for gold is expected to be around the $1,955 level. If there is an increased demand for precious metals, gold has the potential to break through the $1,955 level and target the next resistance at $1,965. On the downside, support for gold is seen around the $1,935 level, and a break below this level could lead to a further decline towards $1,919.

It is important to monitor the core durable goods orders and the UoM consumer sentiment from the US economy, as these factors could impact the price action of gold and the US dollar.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) - Trade Idea

Entry Price – Buy Above 1945

Stop Loss – 1935

Take Profit – 1960

Risk to Reward – 1 : 1.5

Profit & Loss Per Standard Lot = +$1500/ -$1000

Profit & Loss Per Micro Lot = +$150/ -$100

Daily Price Outlook

• Gold is facing resistance at the $1960 level
• Support is expected around the $1952 level
• Violation of the $1952 level could expose gold to support levels at $1944 and $1936

Gold is currently trading around the $1955 level, with a bearish sentiment prevailing in the market. On the four-hour timeframe, a descending candle pattern is forming, indicating a strong selling trend in gold.

The immediate resistance for gold is expected around the $1960 level, while support can be found around the $1952 level. A breach of the $1952 level may lead to a further decline towards the next support levels at $1944 and $1936.

Conversely, if gold manages to hold above the $1950 level, it could trigger a bullish bounce. A break above the $1960 to $1968 range may indicate a potential bullish correction.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) - Trade Idea

Entry Price – Buy Above 1952

Stop Loss – 1942

Take Profit – 1968

Risk to Reward – 1 : 1.7

Profit & Loss Per Standard Lot = +$1649/ -$924

Profit & Loss Per Micro Lot = +$164/ -$92

Daily Price Outlook

As we approach Thursday’s European session, the price of gold (XAU/USD) is wavering, struggling to determine a clear path as market players juggle positions near an important short-term support line, roughly at $1,955.

This gold price behavior mirrors the market’s apprehension amid mixed information related to US debt ceiling negotiations and the actions of the US Federal Reserve (Fed). The cautious sentiment ahead of a barrage of mid-tier US data could also impact XAU/USD traders.

Despite signs of progress in recent negotiation sessions, US policymakers’ failure to finalize a debt ceiling extension deal, coupled with an impending extended weekend for the House Representatives, is causing heightened concerns about a potential US default. Major global rating agencies, such as Fitch and Moody’s, have expressed concerns about the US’s credit rating status, which the US Treasury Department has acknowledged.

Elsewhere, minutes from the latest Federal Open Market Committee (FOMC) meeting revealed that there was division among decision-makers over the recent 0.25% interest rate hike from the US central bank. This discrepancy casts doubt on market expectations for a similar move in June.

Atlanta Fed President Raphael Bostic commented that we’re just starting the challenging part of managing inflation. Echoing his sentiments, Federal Reserve Governor Christopher Waller emphasized his lack of support for pausing rate hikes unless compelling evidence shows inflation is moving toward the 2% target.

Despite record interbank repo turnovers and expectations for further monetary easing from China, geopolitical tensions could restrict gold price movements.

Preliminary data from the CME Group indicates another drop in open interest in gold futures markets on Wednesday, down by about 2.3K contracts. In contrast, trading volume increased for the second consecutive session, up by approximately 29.6K contracts.

Wednesday’s sharp drop in gold prices, paired with reduced open interest, suggests that a prolonged decline is currently unlikely. On the downside, there appears to be considerable resistance around $1950 per troy ounce.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold is currently trading around the $1955 level, with a bearish sentiment prevailing in the market. On the four-hour timeframe, a descending candle pattern is forming, indicating a strong selling trend in gold.

The immediate resistance for gold is expected around the $1960 level, while support can be found around the $1952 level. A breach of the $1952 level may lead to a further decline towards the next support levels at $1944 and $1936.

Conversely, if gold manages to hold above the $1950 level, it could trigger a bullish bounce. A break above the $1960 to $1968 range may indicate a potential bullish correction.

Daily Price Outlook

During the early European session on Wednesday, the gold price failed to capitalize on its slight intraday increase and faced selling pressure around the $1,980 level. The rebound seen overnight from the monthly low recorded last week seems to have stalled, with the XAU/USD now retracing closer to the $1,970 level.

Expectations of a more hawkish stance from the Federal Reserve (Fed) following recent comments by various Fed officials have hindered the gains for gold. The market is now pricing in a 30% probability of a 25 basis points (bps) rate hike in June, which acts as a headwind for the non-yielding precious metal.

The release of the Federal Open Market Committee (FOMC) meeting minutes later in the US session will continue to be a focal point for the market, as investors seek clues about the timing of the next rate hike and its impact on short-term USD dynamics and the XAU/USD price.

Concerns about a global economic slowdown and the unresolved negotiations to raise the US debt ceiling provide some support for safe-haven gold.

The recent talks between President Joe Biden’s administration and congressional Republicans on the debt ceiling ended without an agreement to increase the borrowing cap for the federal government, raising worries about potential debt defaults and dampening investor confidence.

Additionally, the possibility of an impending recession may deter bearish bets on XAU/USD.

The USD’s strength continues to act as a headwind for the gold price, with the USD Index (DXY) maintaining its elevated position near the two-month high reached on Tuesday.

Growing expectations of the Fed maintaining higher interest rates for a longer period reinforce the overall bullish outlook for the USD. This may weigh on the demand for gold priced in USD ahead of the crucial FOMC meeting minutes release.

The ongoing US debt ceiling talks and US bond yields will also influence USD demand and impact gold trading. Furthermore, overall market sentiment will play a role in creating short-term trading opportunities for XAU/USD.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

Gold experienced various fluctuations on Wednesday, trading around the $1,972 level. The recent breach of the 23.6% Fibonacci retracement level at $1,968 suggests it may serve as a support level for Gold.

Key technical indicators, such as the 50-day exponential moving average, RSI, and MACD, support a bullish trend, indicating a high probability of continued upward movement.

Resistance is observed around the $1,980 level on the upside, and a breakthrough above this level could drive prices towards $1,984. Additionally, surpassing the $1,984 level may lead Gold to target the 61.8% Fibonacci retracement level at $1,985.

Daily Price Outlook

• Gold hovers around the $1,972 level, with potential support at $1,968.
• Technical indicators, including the 50-day exponential moving average, RSI, and MACD, support a bullish trend for Gold.
• Resistance is observed at $1,980, with the possibility of further gains towards $1,984 and $1,985 levels.

Gold traded around the $1,972 level on Wednesday, displaying various fluctuations. The previous breach of the 23.6% Fibonacci retracement level at $1,968 suggests it may act as a support level for Gold. Key technical indicators, including the 50-day exponential moving average, RSI, and MACD, support a bullish trend, indicating a strong likelihood of a continued upward movement.

On the upside, resistance is observed around the $1,980 level, and a breakthrough above this level could drive prices towards $1,984. Furthermore, if Gold surpasses the $1,984 level, it may target the 61.8% Fibonacci retracement level at $1,985.

However, market focus remains on the release of the FOMC meeting minutes from the US economy, as any indications or insights about future monetary policy could significantly impact Gold’s price action. Hence, it is important to keep a close watch on the $1,968 or $1,965 levels, as they are likely to serve as key support levels for Gold’s price movements today.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) - Trade Idea

Entry Price – Buy Above 1965

Stop Loss – 1950

Take Profit – 1985

Risk to Reward – 1 : 1.33

Profit & Loss Per Standard Lot = +$2000/ -$1500

Profit & Loss Per Micro Lot = +$200/ -$150

Daily Price Outlook

    * Gold experiences a strong bearish movement around the 1960 level.

    * Support levels identified at 1955 and potential target at 1952.

    * Resistance level expected at 1968, with potential targets at 1975 or 1980.

    * Bearish sentiment indicated by the 50-day exponential moving average and formation of bearish candles.

Good morning, everyone. The precious metal gold is currently experiencing a strong bearish movement around the 1960 level. As observed on the four-hour timeframe, it aligns closely with our previous forecast, indicating a downward trend.

The next level of support is expected to be around 1955, with a potential target of 1952. On the other hand, resistance for gold is likely to be encountered at the 1968 level. If the price manages to break above this level, it could potentially reach 1975 or 1980.

The 50-day exponential moving average suggests a bearish sentiment, further supported by the formation of consistent bearish candles on the four-hour timeframe.

Additionally, the presence of three consecutive black rose candles indicates a strong selling pressure. Considering these factors, it is advisable to look for short positions below the 1965 level, with a target set at 1955 or 1951.

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below 1965

Stop Loss – 1975

Take Profit – 1950

Risk to Reward – 1 : 1.5

Profit & Loss Per Standard Lot = +$1500/ -$1000

Profit & Loss Per Micro Lot = +$150/ -$100

Daily Price Outlook

The gold price is facing challenges in capitalizing on the moderately positive rebound it experienced on Friday, after reaching its lowest level since early April near $1,950.

As the new week begins, the XAU/USD has shown fluctuations between modest gains and losses during the early European session.

Currently, it is trading around $1,980, showing a slight increase for the second consecutive day.

US Dollar Rebounds, Impacting Gold Price Amid US-China Optimism and Debt Ceiling Concerns

On Monday, the US Dollar (USD) attracted buyers after reaching a two-month high, temporarily halting the decline in its price from Friday. However, this strengthening of the USD has hindered the gold price, which is denominated in USD.

The optimism surrounding a potential improvement in US-China relations, as expressed by President Joe Biden during the G7 conference in Japan, is partially offset by concerns over slowing global growth and the alarming breakdown in negotiations regarding the US debt ceiling.

US debt ceiling woes and economic worries lend support to XAU/USD.

Let's recall that towards the end of the previous week, discussions regarding the potential increase of the US government's $31.4 trillion debt ceiling abruptly broke down.

This situation reduces the likelihood of a timely resolution and raises concerns about the unprecedented possibility of a default on American debt.

Furthermore, Jerome Powell, the chairperson of the Federal Reserve (Fed), made some less assertive remarks that negatively impacted the USD but supported the price of gold, a safe-haven asset.

During a Fed research conference, Powell mentioned the uncertainty regarding the need for further interest rate hikes, considering the uncertainties surrounding the consequences of previous rate increases.

Fed Chair Powell's Less Aggressive Statements Provide Downside Support

Powell restated that the central bank will now assess the situation at each meeting and highlighted that, after a year of substantial rate hikes, policymakers have the luxury of examining the facts and evolving circumstances to make informed decisions.

Powell's preference for a gradual approach to raising interest rates has contributed to a decline in US Treasury bond yields, dissuading USD bulls from taking risky positions and aiding in the limited decrease of gold prices, which do not generally yield.

However, it is important to note that there hasn't been any significant buying activity, urging caution before positioning for potential future appreciation.

GOLD – Technical Outlook

Gold prices ended the week at the cool level of $1,977.25, and they're still hanging out around that range. But uh-oh, the stochastic indicator seems to have lost its groove and is flashing those overbought signals. That's putting some negative pressure on the market, especially with the EMA50 throwing shade.

All of these factors are like a cheerleader for the correctional bearish trend, pushing for a target of $1,945.20. However, if the gold price can break free from the negative scenario and surpass $1,977.25, then we might see it score some extra gains, maybe even reaching $2,016.95.

So, for today's trading, we're looking at a range between $1,955.00 as support and $1,990.00 as resistance. And in terms of trend, it's feeling a bit bearish, like a grizzly getting ready for a downward dance.

Let's keep an eye on those gold prices and see where they groove next!