- Gold price is making efforts for keeping auction confidently above $1,980.00 amid the delicate USD Index.
- Market sentiment is quite positive after the clearance of the US debt-ceiling bill in Congress.
- The only catalyst that can save the USD index from a further casualty is the US NFP data.
Gold price (XAU/USD) is looking to fit its auction above $1,980.00 in the early European session. The precious metal has been fueled with fresh blood as the USD Index is expected to remain in the bearish trajectory amid the absence of recovery signals.
S&P500 futures have posted decent gains in Asia as the market sentiment is quite positive after the clearance of the US debt-ceiling bill in Congress and a decline in expectations of one more interest rate hike from the Federal Reserve (Fed).
The US Dollar Index has refreshed its weekly low at 103.45 as Fed policymakers are favoring a pause in June’s monetary policy meeting considering the fact that US domestic factory activities are consistently contracting.
The only catalyst that can save the USD index from a further casualty is the United States Nonfarm Payrolls (NFP) data. Economists at Commerzbank expect if the US labor market report for May is strong and above expectations, the Dollar could rise. Further, they added that given the fairly stable downward trend in employment growth, they expect 200K new jobs to have been created in May after 253K in April. This would probably keep the unemployment rate at 3.4%. The noticeable weakening of the labor market desired by the US Federal Reserve, which could dampen inflation, would thus not yet be achieved.
Gold technical analysis
Gold price has delivered a breakout of the downward-sloping trendline plotted from an all-time high at $2,079.76 on a two-hour scale. The precious metal is gathering strength for breaking above the horizontal resistance plotted from May 19 high at $1,984.25.
Gold price has climbed above the 200-period Exponential Moving Average (EMA) at $1,973.58, which conveys that the long-term trend has turned bullish.
The Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the upside momentum is active now.
Gold two-hour chart
|Today last price||1980.59|
|Today Daily Change||2.83|
|Today Daily Change %||0.14|
|Today daily open||1977.76|
|Previous Daily High||1983.17|
|Previous Daily Low||1953.41|
|Previous Weekly High||1985.3|
|Previous Weekly Low||1936.77|
|Previous Monthly High||2079.76|
|Previous Monthly Low||1932.12|
|Daily Fibonacci 38.2%||1971.8|
|Daily Fibonacci 61.8%||1964.78|
|Daily Pivot Point S1||1959.72|
|Daily Pivot Point S2||1941.69|
|Daily Pivot Point S3||1929.96|
|Daily Pivot Point R1||1989.48|
|Daily Pivot Point R2||2001.21|
|Daily Pivot Point R3||2019.24|
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.