Gold price regains positive traction on the first day of a new week and builds on Friday’s late bounce from levels just below the $2,000 psychological mark. The XAU/USD sticks to its gains through the first half of the European session and is currently at the top end of its daily trading range, around the $2,025 region.
Modest US Dollar Weakness Lends Support To Gold Price
The US Dollar (USD) edges lower for the second successive day and remains well within striking distance of the monthly low touched last week, which, in turn, is seen benefitting Gold prices. Despite the mostly upbeat release of the jobs report from the United States (US) on Friday, market participants seem convinced that the Federal Reserve (Fed) is nearing the end of its rate-hiking cycle. The Fed Fund futures indicate a 90% probability that the US central bank will hold rates in June. Moreover, the markets have been pricing in the possibility that the Fed will cut rates in the second half of this year amid signs that the economy is slowing. This, in turn, continues to weigh on the Greenback and lends some support to the US Dollar-denominated commodity.
Sliding US Bond Yields Further Drive Flows Towards XAU/USD
Dovish Fed expectations and worries about a full-blown banking crisis and the US debt ceiling lead to a further decline in the US Treasury bond yields. It is worth recalling that US Treasury Secretary Janet Yellen issued a stark warning on Sunday that a failure by Congress to act on the debt ceiling could trigger a “constitutional crisis”. Yellen added that a default would call into question the federal government’s creditworthiness and sounded the alarm over possible financial market consequences if the debt ceiling is not raised by early June. This is seen as another factor weighing on the Greenback and offering additional support to the safe-haven Gold price. A generally positive tone around the equity markets might cap gains for the precious metal.
Focus Now Shifts To US Consumer Inflation Figures On Wednesday
Traders also seem reluctant to place aggressive bets and prefer to wait for the latest US consumer inflation figures, due on Wednesday. The crucial US Consumer Price Index (CPI) report will play a key role in driving market expectations about the Fed’s next policy move, which, in turn, will influence the USD demand and help determine the near-term trajectory for Gold price. In the meantime, the USD remains at the mercy of the US bond yields without any relevant market-moving economic data from the US. Apart from this, the broader risk sentiment will be looked upon to grab short-term trading opportunities around the XAU/USD.
Gold Price Technical Outlook
From a technical perspective, any subsequent move up will likely confront some resistance near the $2,040 region ahead of the $2,050 supply zone. Some follow-through buying can potentially lift Gold’s price back towards the all-time high, around the $2,078-$2,079 region touched last Thursday. The momentum could extend further, allowing bulls to conquer the $2,100 round-figure mark.
Conversely, the daily swing low, around the $2,015 area, might now protect the immediate downside. The $2,000 psychological mark follows this. A convincing break below the latter might prompt some technical selling and make the Gold price vulnerable to accelerate the fall towards the $1,980 zone en route to the $1,970 strong horizontal support. Some follow-through selling will negate any near-term positive outlook and shift the bias toward bearish traders.
This Post Has 23 Comments
mexico pharmacies prescription drugs: mexican pharma – buying prescription drugs in mexico
canada rx pharmacy world: Online medication home delivery – canadian pharmacy com
ventolin canada: Ventolin inhaler – ventolin price australia
neurontin for sale online: neurontin pills – neurontin online usa
ventolin inhaler: cost of ventolin in usa – ventolin canada
ventolin tablet: Ventolin inhaler price – ventolin spray
viagra generico sandoz: viagra generico – viagra generico in farmacia costo
kamagra senza ricetta in farmacia: viagra prezzo – viagra generico sandoz
Farmacie online sicure: Tadalafil generico migliore – Farmacia online miglior prezzo
pillole per erezione in farmacia senza ricetta: viagra senza ricetta – pillole per erezione in farmacia senza ricetta
farmacia senza ricetta recensioni: viagra generico – viagra consegna in 24 ore pagamento alla consegna
farmacie online sicure: comprare farmaci online con ricetta – acquisto farmaci con ricetta
farmacias online baratas: Cialis generico – farmacia online envГo gratis
viagra para hombre precio farmacias similares: viagra generico – viagra online rГЎpida
farmacia online madrid: Tadalafilo precio – farmacias online baratas
casibom giris adresi: casibom guncel – casibom guncel giris adresi
casibom guncel giris
I was looking at some of your posts on this site and I think this internet site is really informative!
Continue posting.Raise blog range
Hey! Do you know if they make any plugins to help with SEO?
I’m trying to get my website to rank for some targeted
keywords but I’m not seeing very good results. If
you know of any please share. Thanks! You can read similar article here
I’ve been browsing online greater than 3 hours as of late, yet I by no means discovered any interesting article like yours. It’s pretty value enough for me. Personally, if all webmasters and bloggers made excellent content material as you did, the internet shall be a lot more useful than ever before!
I’ll immediately take hold of your rss feed as I can’t to find your e-mail subscription link or newsletter service. Do you have any? Kindly let me know so that I may just subscribe. Thanks!
Hello there! Do you know if they make any plugins to help with
SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good gains.
If you know of any please share. Appreciate it! You can read similar text here: Choose your escape room
Hi there! Do you know if they make any plugins to help with SEO?
I’m trying to get my website to rank for some targeted
keywords but I’m not seeing very good results. If you know of any
please share. Thank you! I saw similar art here: Scrapebox List
Wow, fantastic blog format! How lengthy have you been blogging for?
you make blogging glance easy. The whole look
of your web site is great, as well as the content!
You can see similar here sklep internetowy