GOLD (May 30) affected by the recovery of the US Dollar

Gold prices hit a two-month low earlier this week due to concerns over US debt ceiling decreasing along with the increase in US interest rates. The yield curve for treasury bonds has been steadily increasing, with the most significant changes observed towards the end of the curve.

The widely tracked US 10-year real yield is currently around 1.6%, the highest since the banking crisis in March. When adjusted for inflation, investors may consider non-yielding assets such as gold less attractive.

The US dollar has been steadily rising, and the direction of the USD index (DXY) may lead the precious metal in the next move. The volatility of gold has decreased, indicating that the market is comfortable with the current prices.

Comment:

Gold is currently testing the lower limit of the uptrend channel that began in November last year.

The highest level in May 2021 at $2,085 surpassed the peak in March 2022 at $2,078 but failed to exceed the all-time high of $2,089. This failure to break through the new level has established a potential resistance zone of $2,080 - $2,090, indicating a triple top pattern that may lead to a bearish market.

However, if the levels are maintained, the overall uptrend may continue. The next resistance level may be near the upward trend line at around $2,160. A clear break below $1,930 could lead to a price decline, but if these levels hold, it may indicate that the overall upward trend may continue.

The price action in the next few sessions may provide clues for the medium-term direction.

Comment:

Gold breaks to continue to support daily, wait for a strong hit test, we expect a round resistance at 1900 or beyond, a gap at 187x.

⭐️Make a trading plan:

✅Sell ​​the $1,942-$1,940 range when the price hits the resistance area.
✖️Stoploss: $1,945.

AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!

Comment:

🟢Strategy active

Comment:

🔴Strategy failed !