GOLD (June 27) Recovery level pulled back to $1.940
Gold is making another recovery effort, reaching $1,940 on Tuesday, as the USD faces a new selling wave amid improved risk sentiment and stable US Treasury bond yields.
Although gold bids have been light, they were hindered by the strong rebound in US Treasury yields, offsetting the weakness in the US dollar. Concerns about political instability in Russia have prompted a safe-haven flow into US government bonds, causing US Treasury yields to plummet.
The benchmark 10-year US Treasury yield dropped to its lowest level in three weeks, around 3.67%, before rebounding to a solid 3.74%, as the Fed's hawkish outlook continues to solidify. Therefore, the upward trend of gold prices remains limited despite the widespread retreat of the US dollar.
Although gold bids have been light, they were hindered by the strong rebound in US Treasury yields, offsetting the weakness in the US dollar. Concerns about political instability in Russia have prompted a safe-haven flow into US government bonds, causing US Treasury yields to plummet.
The benchmark 10-year US Treasury yield dropped to its lowest level in three weeks, around 3.67%, before rebounding to a solid 3.74%, as the Fed's hawkish outlook continues to solidify. Therefore, the upward trend of gold prices remains limited despite the widespread retreat of the US dollar.
Trade closed: stop reached:
🔴Strategy failed !
Comment:
⭐️Make a trading plan:
✅Buy order in the $1,884-$1,887 price zone when the support zone is approached.
✖️Stoploss: $1,880.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!
✅Buy order in the $1,884-$1,887 price zone when the support zone is approached.
✖️Stoploss: $1,880.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!
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.
Comment:
On the inflation front, the PCE price index was relatively unchanged, rising 4.1%, compared to the previous estimate of 4.2%. Core PCE, which strips out volatile food and energy prices, was a tick lower than expected, rising 4.9%, compared to consensus forecasts of 5.0%.
Comment:
Friday, the U.S. Department of Commerce said its core Personal Consumption Expenditures price index increased 0.3% last month, compared to April's increase of 0.4%. The inflation rose in line with economists' expectations.
Meanwhile, inflation in the last 12 months rose 4.6%, down a tick from April's 4.7% increase. Annual inflation was slightly cooler than expected as economists forecasted an unchanged reading. However, looking at the broader trend, inflation remains stubbornly high, more than double the Federal Reserve's target of 2%.
Meanwhile, inflation in the last 12 months rose 4.6%, down a tick from April's 4.7% increase. Annual inflation was slightly cooler than expected as economists forecasted an unchanged reading. However, looking at the broader trend, inflation remains stubbornly high, more than double the Federal Reserve's target of 2%.
Comment:
Retail trader data shows that 73.17% of traders are currently buying gold, with a long to short ratio of 2.73 to 1. The number of traders buying gold is 4.30% lower than yesterday and 2.28% lower than last week. On the other hand, the number of traders selling gold is 3.67% higher than yesterday and 4.74% higher than last week.
While most traders are buying gold, our contrarian view suggests that gold prices may continue to decline. However, it's worth noting that the number of traders buying gold has decreased compared to yesterday and last week. This change in sentiment indicates that the current downward trend in gold prices may soon reverse, despite the fact that traders are still mostly buying gold.
While most traders are buying gold, our contrarian view suggests that gold prices may continue to decline. However, it's worth noting that the number of traders buying gold has decreased compared to yesterday and last week. This change in sentiment indicates that the current downward trend in gold prices may soon reverse, despite the fact that traders are still mostly buying gold.
✅Buy order in the $1,923-$1,926 price zone when the support zone is approached.
✖️Stoploss: $1,920.
AND ALWAYS REMEMBER WHAT YOU NEED TO DO IS MANAGE RISK. GOOD LUCK !!!