Gold Price Faces Bearish Consolidation, but Hopes Sparkle for Recovery
The gold price is currently in a bearish consolidation phase, hovering within a narrow trading range near the $1,915-$1,916 area after a recent dip.
Arslan Butt•Friday, June 23, 2023•2 min read

The GOLD price is currently in a bearish consolidation phase, hovering within a narrow trading range near the $1,915-$1,916 area after a recent dip. While major central banks adopting a hawkish stance and the modest strength of the US Dollar have posed challenges for gold, there are glimmers of hope for a potential recovery.
The recent rate hikes by the Bank of England, Swiss National Bank, Norges Bank, and others have exerted downward pressure on the non-yielding precious metal. Additionally, the US Dollar’s resilience, backed by Federal Reserve Chair Jerome Powell’s hints at further interest rate hikes, has restrained the US Dollar-denominated gold price.
Despite these headwinds, GOLD remains a sought-after safe-haven asset amid economic concerns and cautious sentiment in equity markets. While the upside potential for gold is currently limited, it is worth monitoring for any signs of a meaningful rebound.
Market participants eagerly await the release of flash Purchasing Managers’ Index (PMI) data, which will offer fresh insights into the global economic condition and influence the demand for safe-haven assets like gold. Additionally, shifts in US bond yields will continue to impact the dynamics of the US Dollar and present potential short-term trading opportunities for gold.

From a technical perspective, the sustained break below the 100-day Simple Moving Average (SMA) signals bearish momentum. Oscillators on the daily chart remain firmly in the bearish territory, suggesting further downside potential. This raises the possibility of gold sliding towards the $1,900 level, followed by the $1,876-$1,875 area and the significant 200-day SMA around $1,840.
On the bright side, key resistance levels for GOLD can be found around the $1,924-$1,925 zone, followed by the $1,936 area and the 100-day SMA near $1,942. A breakthrough above these levels could ignite fresh buying interest, with additional resistance at $1,962-$1,964 and $1,970-$1,972. Surpassing these barriers might trigger a short-covering rally, propelling the gold price towards the psychological $2,000 mark and further resistance at $2,010-$2,012.
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ABOUT THE AUTHOR
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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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