Gold price edges lower as PBoC keeps Gold buying on hold
Updated
☘️Fundamental analysis
Gold prices attracted some selling during early European trading on Monday. Gold lost momentum as the People's Bank of China (PBoC), China's central bank, kept its gold purchases unchanged for the second month of June, according to official data released on Sunday. It should be noted that China is the world's largest consumer of gold bars, and a pause in gold purchases could affect gold prices.
On the other hand, growing speculation that the US Federal Reserve (Fed) will cut interest rates in the third quarter could push up unprofitable gold prices. Furthermore, political instability in France after voter opinion polls showed the final round of voting in the French parliamentary election pointed to a hung parliament, which could spur Safe haven assets like Gold. Traders will pay closer attention to Fed Chairman Jerome Powell, who will testify on Tuesday ahead of June US Consumer Price Index (CPI) inflation data on Thursday.
☘️Technical analysis
Gold price decreased slightly during the day. Technically, the yellow metal maintains a bullish bias on the daily chart as it holds above the 34 EMA and 89 EMA. The precious metal maintains a breakout above the formed descending trend channel formed on May 10. RSI reacts at the 50 zone, signaling that gold will still maintain its upward momentum today.
The first upside barrier for XAU/USD will appear at the psychological $2,400 level after overcoming Friday's peak around 2392.
On the downside, support for the yellow metal lies at $2,370, a break out of a key multi-day high.
Support: 2378 -2370 - 2364 - 2360
Resistance: 2385 -2393 - 2400
SELL price range 2398 - 2400 Stoploss 2403
BUY price range 2370 - 2368 Stoploss 2365
Gold prices attracted some selling during early European trading on Monday. Gold lost momentum as the People's Bank of China (PBoC), China's central bank, kept its gold purchases unchanged for the second month of June, according to official data released on Sunday. It should be noted that China is the world's largest consumer of gold bars, and a pause in gold purchases could affect gold prices.
On the other hand, growing speculation that the US Federal Reserve (Fed) will cut interest rates in the third quarter could push up unprofitable gold prices. Furthermore, political instability in France after voter opinion polls showed the final round of voting in the French parliamentary election pointed to a hung parliament, which could spur Safe haven assets like Gold. Traders will pay closer attention to Fed Chairman Jerome Powell, who will testify on Tuesday ahead of June US Consumer Price Index (CPI) inflation data on Thursday.
☘️Technical analysis
Gold price decreased slightly during the day. Technically, the yellow metal maintains a bullish bias on the daily chart as it holds above the 34 EMA and 89 EMA. The precious metal maintains a breakout above the formed descending trend channel formed on May 10. RSI reacts at the 50 zone, signaling that gold will still maintain its upward momentum today.
The first upside barrier for XAU/USD will appear at the psychological $2,400 level after overcoming Friday's peak around 2392.
On the downside, support for the yellow metal lies at $2,370, a break out of a key multi-day high.
Support: 2378 -2370 - 2364 - 2360
Resistance: 2385 -2393 - 2400
SELL price range 2398 - 2400 Stoploss 2403
BUY price range 2370 - 2368 Stoploss 2365
Note
support 2378 + 40 pipsNote
support 2370 + 30 pipsTrade closed: stop reached
BUY zone 368-23770 + 100 pipsNote
Actual trading volume of COMEX gold futures contractsCOMEX's most active gold futures contract saw 4,169 lots traded in a minute, for a total contract value of $985 million.
This is the reason why gold is down, guys.
Note
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