Gold Value Experiences Oscillations Above $2,000 Mark Amid Anticipation of US S&P PMI Data Release

In the Asian trading session, GOLD prices (XAU/USD) exhibit fluctuations above the crucial $2,000.00 resistance level, stabilizing close to $2,005.00 after a steady rise. Investors are keenly awaiting the publication of preliminary US S&P PMI data to gauge potential market impacts.

S&P500 futures experienced a slight increase during the Asian session, following three consecutive bearish settlements. Market sentiment was negatively affected by Tesla‘s weak revenue projections, attributed to Elon Musk’s aggressive price reductions. The US Dollar Index (DXY) has continued its correction, reaching approximately 101.77. Over the last few trading sessions, the USD Index has been confined within a 100.90-102.03 range, with any movement beyond these limits seen as significant.

The restrained USD index is also placing pressure on US Treasury yields. The demand for US government bonds has grown in response to increased weekly jobless claims. Unemployment-related claims rose to 245K, surpassing the expected 240K. This indicates a slowdown in the tight labor market and fuels expectations that the Federal Reserve (Fed) will not implement further rate hikes after the May monetary policy meeting.

The forthcoming release of preliminary US S&P PMI data will determine how higher Fed rates impact economic activities. Analysts predict Manufacturing and Services PMI will decline to 49.0 and 51.5, respectively. Weaker-than-expected preliminary PMI data could put additional pressure on the US Dollar.

Gold Technical Outlook

GOLD prices challenged the $2,006.00 resistance level and have since oscillated around the EMA50, with the stochastic indicator displaying evident negative signals. This is anticipated to encourage a return to the corrective bearish trend, which will commence by breaking the $1,992.20 level and paving the way for a potential rally towards the $1,957.30 region.

As a result, we maintain our bearish outlook for the near term, with the caveat that surpassing the $2,006.00 – $2,010.00 range would invalidate the negative scenario and prompt a resumption of the primary bullish trend. For today, the projected trading range lies between a $1,985.00 support level and a $2,015.00 resistance level.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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