Gold Price (XAU/USD) Holds Onto Gains, Supported by Cautious Market Sentiment

The GOLD Price (XAU/USD) is maintaining its mild gains and enjoying a three-day winning streak amid cautiously optimistic market conditions. The precious metal is benefitting from the positioning of the US Dollar ahead of key data releases and positive headlines from China, despite the volatile trading hours on Tuesday.

The lower-than-expected fixing of the USD/CNY price by the People’s Bank of China (PBoC) and reports of Chinese state banks selling US Dollars in offshore currency markets have weighed on the USD and provided support for the Gold Price. Furthermore, news of Asian lobbyists advocating for relaxed rules on Chinese equities’ listings and the easing of concerns surrounding Moscow’s mutiny have contributed to the positive sentiment, favoring the Gold Price.

However, the GOLD buyers face challenges from Monday’s US activity numbers, hawkish comments from Fed officials, and the upbeat testimony from Fed Chair Jerome Powell last week. Therefore, the focus will be on the US Durable Goods Orders for May, expected to show a decline of -1.0% compared to the previous reading of 1.1%, and the US Conference Board’s (CB) Consumer Confidence for June, anticipated to arrive at 103.90 versus the previous reading of 102.30. These releases will provide intraday direction for the Gold price.

Gold Technical Outlook: Key Levels to Monitor

GOLD prices concluded yesterday below the level of $1,929.00, maintaining the bearish trend outlook and anticipating a potential decline towards $1,913.15 initially. It is important to note that a breakthrough of this level would likely drive the price towards the subsequent correction level at $1,873.50.

The bearish wave remains intact within the confines of a bearish channel, which continues to receive support from the 50-day exponential moving average (EMA50). However, if the price manages to breach the levels of $1,929.00 and $1,945.20, it would halt the anticipated decline and potentially initiate a bullish reversal.

The projected trading range for today is expected to oscillate between the support level of $1,905.00 and the resistance level of $1,935.00.

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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