Gold market has rebounded strongly from the support level just above $1,950, and disappointing economic data is creating new momentum. August gold futures last traded at $1,976, up 0.35% on the day.
Precious metal recovered from overnight losses and jumped into positive territory for the day as it saw new safe-haven demand when US service sector activity fell more than expected in May, according to the latest data from ISM.
Analysts believe that gold has new momentum as disappointing economic data may force the Fed to end interest rate hikes. In response to the ISM data, the market sees over an 85% chance that the Fed will keep interest rates unchanged at next week's monetary policy meeting.
According to surveys on Fed's activities and economic data, including declining exports, investment, and consumption, it seems that the GDP growth in the second quarter will be less than 0.
Comment
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⭐️Make a trading plan: ✅Buy order in the $1,949-$1,952 price zone when the support zone is approached. ✖️Stoploss: $1,945.
✅Sell the $1,972-$1,969 range when the price hits the resistance area. ✖️Stoploss: $1,976.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!