XAU/USD outlook: Gold holds in extended near-term range but overall picture remains bullishly aligned
|Gold price stays in red on Thursday, with additional pressure seen from better than expected US retail sales which add to Fed’s stance of staying on hold with interest rates until getting clearer signals about inflation.
Fresh bears probed below the floor of recent range ($3320 zone) and approached key support at $3308 (top of thick rising daily cloud), which provided strong headwinds and pushed the price higher.
Gold faces two strong and opposite forces, Fed’s sit and wait policy which keeps interest rates at high levels and inflates dollar and growing uncertainty over tariffs, economic and geopolitical situation, which continue to fuel safe haven demand.
The yellow metal’s price has stayed in sideways mode for past couple of days, suggesting that two forces are in equilibrium and traders wait for more significant direction signals.
Larger bulls remain firmly in play, although short-term action is still holding in consolidative phase under new record high ($3500).
Near-term action remains within $3377/$3320 congestion (today’s dip under $3320 is likely to be short-lived), with break of either boundary to provide initial direction signals.
Daily studies remain bullishly aligned (positive momentum / daily cloud continues to underpin) that adds to positive outlook with prevailing expectations that current extended consolidation is just a pause before bulls accelerate again.
Solid supports at $3320/00 zone should keep the downside protected for renewed attacks at range tops ($3373/77), violation of which to open way for retest of targets at $3400 (psychological) and $3452 (June 16 top).
Res: 3377; 3392; 3400; 3452
Sup: 3320; 3308; 3300; 3282
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.