Gold Price (XAU/USD) Reverses Bearish Trend, Market Indecisiveness Persists

The GOLD Price (XAU/USD) has bounced back from intraday lows, reversing its bearish sentiment of the past two days. However, overall market indecisiveness remains due to mixed factors surrounding the US Federal Reserve (Fed), China, and subdued market activity.

Concerns about China’s economic slowdown have intensified after the People’s Bank of China (PBoC) cut its benchmark Loan Prime Rates (LPRs) by 10 basis points, matching market expectations. This move, coupled with major banks like Goldman Sachs and JP Morgan lowering China’s growth forecasts, has raised concerns about weakened energy demand and its potential impact on gold consumption.

Conversely, the European Central Bank (ECB) and the Fed have taken a hawkish stance, which has created fears of a global economic slowdown, putting downward pressure on the Gold Price.

Investor attention is now turning to Fed Chair Jerome Powell’s Testimony and the preliminary PMI readings for June, as they are expected to provide clearer short-term direction for the Gold Price.

Key Levels to Monitor for the Gold Price

Our Technical Confluence Indicator highlights that the GOLD Price is currently consolidating near the key level of $1,950 after breaking above it. This level includes the 5-day moving average, Fibonacci 23.6% on the daily chart, and the middle band of the Bollinger on the four-hour chart.

Beyond the $1,950 hurdle, immediate resistance is seen in the $1,955-56 zone, which encompasses the Fibonacci 61.8% on the daily and weekly charts, as well as the 10-day moving average.

If the GOLD Price manages to surpass these levels, it could continue its upward movement until it reaches the $1,968 hurdle and the previous weekly high around $1,972.

On the downside, GOLD sellers would need confirmation from the 100-day moving average support at approximately $1,942, which also aligns with the Fibonacci 38.2% on the weekly chart.

In the event that the GOLD Price drops below $1,942, the previous monthly low near $1,933 could serve as the final defense for buyers of XAU/USD.