Gold Price Analysis: XAU/USD to enjoy additional gains as bulls continue to defend $1,900
|Gold steadied around $1,900 and closed the fourth straight week in the positive territory supported by week-end flows on Friday. As FXStreeet’s Eren Sengezer notes, XAU/USD bulls are not yet ready to give up on additional gains.
See – Gold Price Analysis: XAU/USD still has legs to inch higher – OCBC
XAU/USD buyers continue to defend critical $1,900 level
“On Tuesday, the Consumer Price Index (CPI) data from the euro area and the ISM Manufacturing PMI from the US will be looked upon for fresh impetus. A soft inflation reading from the EU is likely to help the USD outperform its rivals as it would suggest that the European Central Bank is unlikely to consider a hawkish shift in its policy in the absence of price pressures.”
“On Wednesday, investors will look for fresh clues regarding the inflation outlook in the Fed’s Beige Book. In case the publication points out to increasing input prices due to supply constraints and ongoing labour demand issues, gold could push lower amid rising US T-bond yields and vice versa.”
“Ahead of the weekend, the US Bureau of Labor Statistics will release the highly-anticipated May jobs report. The market consensus points to an increase of 621,000 in Nonfarm Payrolls (NFP). A positive surprise could provide a boost to the greenback while a disappointing print is likely to allow XAU/USD to regain bullish momentum.”
“The initial resistance is located at $1,912 (May 26 high) ahead of $1,930 (static level) and $1,953 (Jan. 5 high).”
“$1,900 (psychological level) aligns as the first support before $1,870 (static level, ascending line). A daily close below the latter could attract sellers and cause gold to retreat toward the 200-day SMA, which is currently located around $1,845.”
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