- Gold in a minor correction, resistances look to be $1,255/68.
- The precious metal has plenty scheduled this week as a potential catalyst.
Gold is currently trading at $1,251.94/oz, with a high of $1,254.38/oz and a low of $1,250.94/oz, steady awaiting this week's key scheduled developments from geopolitical risks to nonfarm payrolls.
Last week, gold managed a small gain in the August futures, snapping a 4-session losing streak while spot climbed from $1,248.44 early NY low to $1255.58 the high for Friday. This came about despite US government data that proved that the US economy's inflation gauge is in line with the Fed's target of 2% for May, the greenback was on the backfoot and Gold prices were able to snap a 4-session losing streak.
US core inflation hit the Fed’s 2% target for the first time in six years. The PCE index as being the Federal Reserve’s preferred inflation gauge, climbed by 0.2%, with the rate of inflation over the past 12 months rising to 2.3% and at the fastest pace since March 2012 - (the core inflation rate hit 2% for the first time since April 2012).
The week ahead:
Analysts at Westpac picked out the main key events to watch for: "US Jun ISM national manufacturing survey (Mon), Aust May building approvals, RBA policy decision, NZ dairy auction (Tue), Aust May retail sales and international trade balance, US Independence Day holiday (Wed), US Jun ADP private payrolls, Jun ISM non-manufacturing survey, June FOMC meeting minutes (Thu), US Jun employment report, Canada Jun employment report, US tariffs on $34bn of Chinese imports take effect (Fri)."
Gold levels
The precious metal is looking to stabilise within the golden death cross technical scenario. The 50-D SMA moving average for gold prices, currently at $1,295, is falling below its longer-term 200-D SMA moving average at $1,303).
On a continuation of the correction, resistances look to be $1,255/68, (10-D SMA is located at 1261 ) $1,276 (Jun. 20 high) ahead of $1289 (21-D SMA) and $1300 (psychological level). Support remains intact at $1250 guarding a path down to $1243 (Dec. 8 low).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold ascends but remains shy of testing $2,400 amid hawkish Fed remarks
Gold prices edged higher late in North American session, gaining 0.22% following a hawkish tilt by Fed Chair Jerome Powell. Economic data from the United States was mixed, though Monday’s Retail Sales report and Powell’s remarks kept US Treasury yields higher, capping the yellow metal’s advance.
Bitcoin price outlook amid increased demand and speculation pre-halving
Bitcoin price is edging lower as markets count only days to the halving. Nevertheless, the dump has not shaken the faith of large holders as they continue to cling to their holding even after a month of steady dumps.
UK CPI inflation data ahead: Sterling hovering north of key support
Following today's mixed bag of employment and wages data, today’s attention is directed to the March UK CPI inflation release. Both headline and core measures have surprised to the downside in the previous two releases and are expected to demonstrate further evidence of disinflation.