Today’s Gold Analysis Overview:
The Overall Gold Trend: Still bearish.
Today's Gold Support Points: $4300 – $4240 – $4170 per ounce.
Today's Gold Resistance Points: $4420 – $4480 – $4560 per ounce.
Today's Gold Trading Signals:
Bullish Scenario: Buy gold from the support level of $4265 with a target of $4500 and a stop loss at $4220.
Bearish Scenario: Sell gold from the resistance level of $4480 with a target of $4300 and a stop loss at $4540.
Note
These recommendations are suitable for medium-to-long-term traders, provided there is strict adherence to capital and risk management
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Daily Technical Analysis of Gold/US Dollar (XAU/USD)
With losses exceeding 3%, gold prices faced heavy selling pressure during last Friday's trading session. This pulled the price of the yellow metal down to the $4,312 per ounce support level, its lowest in more than two months—before settling the trading week around $4,329 per ounce. In early trading today, Monday, selling pressure on gold persisted, stretching losses to the $4,268 per ounce support floor before stabilizing around $4,300 at the time of writing.
Meanwhile, the prices dropped sharply after a stronger-than-expected May US employment report pushed US Treasury yields higher and boosted the US Dollar. According to the official announcement, the US economy successfully added a total of 172,000 jobs in May, while the country's unemployment rate held steady at 4.3%.
What happened to the US markets after the report?
Via the best trading platforms. US stocks closed sharply lower as bond yields rose, with AI-related technology stocks leading the decline. The S&P 500 fell 200.57 points, or 2.6%, to 7,383.74. The Dow Jones Industrial Average dropped 695.15 points, or 1.3%, to 50,866.78. The Nasdaq Composite declined 1,121.53 points, or 4.2%, to 25,709.43. The Russell 2000 fell 101.83 points, or 3.5%, to 2,833.50.
Technically, the bearish outlook for gold prices remains the most likely scenario in the coming days. A break below the $4300 support level is likely if the dollar continues to strengthen. Simultaneously, technical indicators on the daily timeframe are pushing gold towards oversold territory, as evidenced by the movement of the 14-day RSI and the MACD. Moving averages also point to increased bearish pressure.
Conversely, a break in the downtrend for gold prices would occur if they return to the resistance levels of $4520 and $4600 per ounce.
Gold Forecast Summary
The bearish bias for gold remains dominant at present. The market will continue to closely monitor the strength of the dollar, the future of central bank policies, and the trajectory of global geopolitical tensions, particularly those emanating from the oil-rich Arabian Gulf region. Also, gold is awaiting upcoming US inflation data, which could determine the future direction of the precious metal.
Trading Tips
Who follow the prevailing trend prefer to wait for corrective rallies to seize new selling opportunities, while strictly adhering to money management and using appropriate stop-loss orders. Especially with the expectation of increased volatility in the coming days.
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