rebounded strongly after reaching a level lower than 2300
Zaktualizowano
Gold for delivery closed down more than 20 USD on Thursday, fell below the 2,300 USD/ounce mark, and recovered slightly in the European session on Friday to 2,314.
Despite weak US PPI, gold prices still fell sharply as the Federal Reserve forecasted only one interest rate cut this year. In addition, a stronger US Dollar also affects gold prices. The Federal Reserve on Wednesday kept interest rates steady despite improving inflation and forecast only one rate cut in 2024, due to Economic growth and the unemployment rate remain above what the Fed considers long-term sustainable levels.
High interest rates increase the opportunity cost of holding gold, making it less attractive compared to other assets in the market, especially the dollar.
Markets are still assessing the Fed's future monetary policy path. The Federal Reserve announced Wednesday that it would leave interest rates unchanged and signaled that there would be only one rate cut in 2024. In March, the Fed had expected three rate cuts in this year.
Before Thursday's PPI data was released, the May Consumer Price Index (CPI) released by the US Department of Labor on Wednesday also showed that inflation had generally cooled, creating momentum for gold to surge. up 1% that day. However, after the Federal Reserve issued hawkish comments, spot gold prices reversed the basic trend.
Technical analysis of gold price
Gold has dropped significantly since reaching the key resistance area around $2,340 – $2,345 which is the confluence of the 0.618 Fibonacci retracement, the $2,345 horizontal resistance and the 21 EMA.
Gold fell back to operating around the 2,305 - 2,300 USD area to maintain the main downtrend from the price channel.
In the short term, the raw price level of $2,300 will be the closest support and if gold continues to break below this technical level it will open up the possibility of continuing towards the target at $2,286.
Even if gold recovers, during the day it will still be limited by the $2,324 level, its technical direction will still lean to the downside.
Support: 2305 - 2291 - 2286 - 2280- 2274
Resistance: 2316 - 2321 - 2325 - 2333 - 2338
SELL price range 2319 - 2321 stoploss 2325
BUY price range 2270 - 2268 stoploss 2264
Despite weak US PPI, gold prices still fell sharply as the Federal Reserve forecasted only one interest rate cut this year. In addition, a stronger US Dollar also affects gold prices. The Federal Reserve on Wednesday kept interest rates steady despite improving inflation and forecast only one rate cut in 2024, due to Economic growth and the unemployment rate remain above what the Fed considers long-term sustainable levels.
High interest rates increase the opportunity cost of holding gold, making it less attractive compared to other assets in the market, especially the dollar.
Markets are still assessing the Fed's future monetary policy path. The Federal Reserve announced Wednesday that it would leave interest rates unchanged and signaled that there would be only one rate cut in 2024. In March, the Fed had expected three rate cuts in this year.
Before Thursday's PPI data was released, the May Consumer Price Index (CPI) released by the US Department of Labor on Wednesday also showed that inflation had generally cooled, creating momentum for gold to surge. up 1% that day. However, after the Federal Reserve issued hawkish comments, spot gold prices reversed the basic trend.
Technical analysis of gold price
Gold has dropped significantly since reaching the key resistance area around $2,340 – $2,345 which is the confluence of the 0.618 Fibonacci retracement, the $2,345 horizontal resistance and the 21 EMA.
Gold fell back to operating around the 2,305 - 2,300 USD area to maintain the main downtrend from the price channel.
In the short term, the raw price level of $2,300 will be the closest support and if gold continues to break below this technical level it will open up the possibility of continuing towards the target at $2,286.
Even if gold recovers, during the day it will still be limited by the $2,324 level, its technical direction will still lean to the downside.
Support: 2305 - 2291 - 2286 - 2280- 2274
Resistance: 2316 - 2321 - 2325 - 2333 - 2338
SELL price range 2319 - 2321 stoploss 2325
BUY price range 2270 - 2268 stoploss 2264
Zlecenie aktywne
Uwaga
Gold clings to recovery gains at around $2,330Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.
Zlecenie aktywne
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