Gold prices have moved slowly higher at the start of this week, moving from a Monday low at 3293, up to a Tuesday high of 3349, with prices slightly lower this morning at time of writing (3335 – 0700 BST).
Traders have already had much to consider this week, with heightened tensions in the Middle East and Ukraine to focus on, as well as the midnight conclusion of the eagerly awaited second round of trade talks between the US and China.
These talks finished after 20 hours of negotiation over 2 days and have seemingly produced a framework for President’s Trump and Xi to sign off on, with progress made in key areas (supply of rare earth metals and advanced technology), while leaving the wider issues for another time.
This leaves the May US CPI (inflation) release due out later today at 1330 BST as the next major scheduled event that could have an influence on where Gold moves into the Friday close. This release takes on more significance as it is the first month where President Trump's tariffs should start to impact prices paid by US consumers. The extent to which this shows up in the data could be the catalyst for a wider shift in risk sentiment and Gold prices depending on how far the print deviates from expectations.
Technical Update: Considering the Bollinger Mid-Average Support
Since the test of the psychological 3500 level on April 22nd, which held and reversed the sharp acceleration higher in Gold, the latest price activity has seen a consolidation extend, as can be seen on the chart below.
Of course, this type of consolidation can materialise following the type of aggressive activity as that seen into the April 22nd all-time high and may be viewed by traders as an on-going attempt to unwind upside price extremes.
However, traders are always looking forward for insight into where Gold may move next, especially with the May US CPI update release out later today.
With that in mind let’s consider what might be the potential support and resistance levels to focus on?
Potential Support Levels:
Within a positive trending condition such as that recently seen in Gold a rising Bollinger mid-average can provide a support level.
For Gold the mid-average currently stands at 3311 (see chart below) and this may represent a relevant first support level for traders to monitor on a closing basis.
While closing breaks below this type of support level offer no guarantee of further price declines, if it were to happen, it may lead to a more extended phase of price weakness.
This could in turn open further downside tests towards to the next potential support at 3289, which is equal to the 38.2% Fibonacci retracement of May 15th to June 3rd 2025 strength, and if this in turn were to break, the 61.8% retracement which stands at 3225.
Potential Resistance Levels:
While the support at 3311 offered by the rising Bollinger mid-average remains intact on a closing basis, it is possible further attempts at price strength may develop. This could lead to tests of higher resistance levels.
The first resistance level for traders to monitor could be 3392, which is the June 3rd session high. Any potential closing breaks above this resistance may be viewed as a more constructive development, which could then open the possibility of further attempts at price strength towards 3435, which is the May 6th session high (see chart above).
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Traders have already had much to consider this week, with heightened tensions in the Middle East and Ukraine to focus on, as well as the midnight conclusion of the eagerly awaited second round of trade talks between the US and China.
These talks finished after 20 hours of negotiation over 2 days and have seemingly produced a framework for President’s Trump and Xi to sign off on, with progress made in key areas (supply of rare earth metals and advanced technology), while leaving the wider issues for another time.
This leaves the May US CPI (inflation) release due out later today at 1330 BST as the next major scheduled event that could have an influence on where Gold moves into the Friday close. This release takes on more significance as it is the first month where President Trump's tariffs should start to impact prices paid by US consumers. The extent to which this shows up in the data could be the catalyst for a wider shift in risk sentiment and Gold prices depending on how far the print deviates from expectations.
Technical Update: Considering the Bollinger Mid-Average Support
Since the test of the psychological 3500 level on April 22nd, which held and reversed the sharp acceleration higher in Gold, the latest price activity has seen a consolidation extend, as can be seen on the chart below.
Of course, this type of consolidation can materialise following the type of aggressive activity as that seen into the April 22nd all-time high and may be viewed by traders as an on-going attempt to unwind upside price extremes.
However, traders are always looking forward for insight into where Gold may move next, especially with the May US CPI update release out later today.
With that in mind let’s consider what might be the potential support and resistance levels to focus on?
Potential Support Levels:
Within a positive trending condition such as that recently seen in Gold a rising Bollinger mid-average can provide a support level.
For Gold the mid-average currently stands at 3311 (see chart below) and this may represent a relevant first support level for traders to monitor on a closing basis.
While closing breaks below this type of support level offer no guarantee of further price declines, if it were to happen, it may lead to a more extended phase of price weakness.
This could in turn open further downside tests towards to the next potential support at 3289, which is equal to the 38.2% Fibonacci retracement of May 15th to June 3rd 2025 strength, and if this in turn were to break, the 61.8% retracement which stands at 3225.
Potential Resistance Levels:
While the support at 3311 offered by the rising Bollinger mid-average remains intact on a closing basis, it is possible further attempts at price strength may develop. This could lead to tests of higher resistance levels.
The first resistance level for traders to monitor could be 3392, which is the June 3rd session high. Any potential closing breaks above this resistance may be viewed as a more constructive development, which could then open the possibility of further attempts at price strength towards 3435, which is the May 6th session high (see chart above).
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.