Gold price is trading within a narrow range on Wednesday, following nearly 3% drop in past two days, which cracked psychological $2300 support, but failed to sustain break lower, contained by daily Kijun-sen ($2289)

Tuesday’s action formed a hammer candlestick, generating an initial signal of reversal of the limited pullback which could be for now described as a healthy correction.

In addition, bear-trap under rising 20DMA may further boost the signal however, more action at the upside will be required to confirm.

Near-term bias is expected to remain with bulls while the price stays above $2300 level, with repeated close above 20DMA ($2324) to reinforce near-term structure for acceleration through $2340 (Fibo 38.2% of $2417/$2291) and close above 10DMA ($2358) to confirm reversal.

Fourteen-day momentum reversed north above the centre line, pointing to existing bullish momentum and RSI stays above neutral 50 zone.

Caution on firm break of pivotal supports at $2300 and $2289, which would increase the risk of deeper pullback.

Markets focus on key economic releases from the US this week (Q1 GDP on Thursday and PCE price index, Fed’s preferred inflation gauge) which would provide more clues about the Fed’s interest rate path and generate fresh signals for the yellow metal.

Res: 2340; 2358; 2369; 2388

Sup: 2324; 2300; 2289; 2260

Interested in XAU/USD technicals? Check out the key levels

    1. R3 2357.18
    2. R2 2347.29
    3. R1 2331.65
  1. PP 2321.76
    1. S1 2306.12
    2. S2 2296.23
    3. S3 2280.59

 

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Majors

Cryptocurrencies

Signatures