Gold Price (XAU/USD) Reflects Market Indecision Amidst Global Factors

Posted Tuesday, June 6, 2023 by
Arslan Butt • 1 min read

GOLD price remains uncertain heading into Tuesday’s European session, as economic calendar lacks major data/events and mixed concerns surround the Federal Reserve’s moves and US-China relations. While Sino-American talks appear positive, tensions over Taiwan persist. Soft US data and previous Fed talks suggest a potential policy pivot, but comments from IMF Managing Director hint at more rate hikes, weighing on gold. Additionally, US debt-ceiling deal passage and banking sector concerns add to downside bias. US Treasury bond yields remain pressured as traders seek safety, while US stock futures and the US Dollar Index show no clear direction.

Gold Price: Key Levels to Monitor

Technical indicators indicate that gold price is fluctuating within a short-term trading range, recently dipping towards the support line. The middle of the Bollinger on the one-hour chart and the 200-HMA highlight $1,955 as a crucial short-term support. Further downwards, the Fibonacci 61.8% in one-week and the 10-SMA on the four-hour chart suggest $1,952 as an additional downside filter.

On the upside, the Fibonacci 38.2% in one-week and previous daily top indicate $1,965 as an immediate key resistance. If gold price surpasses this level, the Pivot Point one-day R1, the upper Bollinger on the one-hour chart, and the Fibonacci 23.6% in one-week mark $1,973 as the last defense for bears.

Note that a break above $1,973 could challenge the $2,000 threshold, while a downside break of $1,955 may quickly push XAU/USD towards the previous monthly low around $1,932. Stay tuned for further developments in gold price movement.

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