GOLD (June 28) Cautious about central bank statements
Gold prices slid on Tuesday as bears teased them ahead of key central bank officials' speeches at the European Central Bank Forum in Sintra. The latest macro data from the US indicates a high probability of a Fed interest rate hike.
Specifically, the Conference Board's consumer confidence index rose to 109.7 in June, the highest level since January 2022. This has pushed economic recession forecasts further away, supporting another 25 basis point hike by the Fed. Other data, including a sharp increase in new home sales in May, also strengthens the likelihood of future rate hikes by the Fed.
Specifically, the Conference Board's consumer confidence index rose to 109.7 in June, the highest level since January 2022. This has pushed economic recession forecasts further away, supporting another 25 basis point hike by the Fed. Other data, including a sharp increase in new home sales in May, also strengthens the likelihood of future rate hikes by the Fed.
Comment:
"The only thing we decided was not to raise rates at the June meeting," Powell said during a panel in Sintra, Portugal. "I wouldn't take moving at consecutive meetings off the table at all."
Comment:
Gold prices are currently experiencing a monthly downtrend, recently breaking below the support level around $1,905. If the XAU/USD price continues to decrease, it could challenge the established downtrend channel by breaking the weakness of the $1,905 support level. Therefore, the bearish camp needs to confirm a bottom around $1,900 to regain control.
On the other hand, the recent resistance level at $1,955 seems puzzling for gold buyers. This suggests that a declining resistance line has been in place for the past eight days, with the most recent resistance level being around $1,930, limiting any immediate price increases in gold.
On the other hand, the recent resistance level at $1,955 seems puzzling for gold buyers. This suggests that a declining resistance line has been in place for the past eight days, with the most recent resistance level being around $1,930, limiting any immediate price increases in gold.
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Comment:
From a technical standpoint, further selling below the $1,900 mark could trigger a price decline for Gold. The daily chart indicators are currently in negative territory, and it may take some time before they reach oversold levels. In that case, Gold prices could quickly drop to the $1,876-$1,875 range.
On the other hand, any positive move above the $1,912-$1,913 range or the current Asian session high could face resistance near the $1,924-$1,925 area before reaching $1,936. A sustained upward momentum could lead to a short-term rally towards the barrier at $1,962-$1,964, on the way to the supply zone at $1,970-$1,972.
On the other hand, any positive move above the $1,912-$1,913 range or the current Asian session high could face resistance near the $1,924-$1,925 area before reaching $1,936. A sustained upward momentum could lead to a short-term rally towards the barrier at $1,962-$1,964, on the way to the supply zone at $1,970-$1,972.
✅Buy order in the $1,899-$1,903 price zone when the support zone is approached.
✖️Stoploss: $1,895.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!