GOLD PRICES STEADY AHEAD OF US CPI & TRADE TALKS

Jun 9

Symbol - XAUUSD

CMP - 3324

Gold is currently testing the liquidity zone during the Asian trading session, exhibiting signs of a potential false breakout. While the metal is showing signs of recovery, the broader fundamental backdrop remains uncertain.

As of Monday, gold is trading steadily around the 3300 level, supported by a weaker US dollar and cautious sentiment among market participants ahead of upcoming US-China discussions and the release of US Consumer Price Index (CPI) data scheduled for Wednesday. Robust Non-Farm Payroll (NFP) figures for May have strengthened the dollar and diminished expectations for a near term FED rate cut. Nonetheless, ongoing domestic challenges in the US are exerting downward pressure on the currency. Investors are repositioning ahead of the CPI release.

From a technical standpoint, the trend remains bullish. Although the price previously breached structural support, it has rebounded during the Asian session following a false breakdown of both the order block and the 3300 liquidity zone. Price action in the near term will be influenced by the 3300–3335 range.

Resistance levels: 3325, 3343, 3375
Support levels: 3303, 3275

Gold appears to be approaching the 3325–3335 zone for a potential retest. Should the dollar continue to weaken and gold sustain a move above the 3340 level, the bullish momentum may persist. However, caution is warranted-a false breakout within the 3325–3335 area could signal a breakdown of the bullish structure and result in a renewed downward move.

5 days ago

Trade closed manually

Gold went 160 pips in profit before reversing promptly. Short position was closed in small profit near cost.