GOLD recovered to EMA21, Middle East situation tense

Updated

On the Asian market on Monday (May 27), gold was delivered immediately XAUUSD increase rapidly in the short term. Gold price touched 2,347 USD/ounce, setting a session high and increasing strongly by more than 13 USD during the day.

XAUUSD The gains were supported by a weaker US Dollar and rising geopolitical risks in the Middle East. Tuesday's speeches by Fed officials Bowman, Mester and Kashkari will be closely watched.

Affected by the Memorial Day/Spring Bank Holiday, US and UK stock markets will be closed for one day on May 27; CME Group's U.S. crude oil futures and precious metals trading will be suspended at 01:30 Hanoi time on May 28.
Gold will get more data from speeches by Fed officials on Tuesday, including those from Bowman, Mester and Kashkari.
The US's first quarter gross domestic product (GDP) released on Thursday will be the focus, with GDP expected to grow 1.5% in the first quarter. Stronger-than-expected data could boost the Dollar and continue to pressure gold, whereas weaker-than-expected data would see gold supported and the Dollar weaker.

In terms of the fundamental picture, gold is receiving some support that could be transformative as the geopolitical situation becomes complicated again. Previous lessons show that every time the geopolitical situation becomes complicated and escalates, gold sets a new all-time peak.

The Israeli army has conducted many air strikes! Killed about 200 people
Early on the morning of May 27 local time, the Gaza Strip Media Office issued a statement saying that in the past 24 hours, the Israeli army conducted 10 attacks on 10 areas in the Gaza Strip such as Jebaliya, Nusayrat, and City. Gaza, and northwestern Rafah. Air strikes targeted evacuation centers run by multiple United Nations agencies, killing a total of about 200 people.
A day earlier, the Qassan Brigades, an armed faction affiliated with Hamas, said it had launched a "massive rocket" attack on Tel Aviv, Israel, in response to the "massacre of civilians by the regime". Zionism".

GOLD fell last week, the market will pay attention to PCE

Analysis of technical prospects for XAUUSD
On the daily chart, receiving support from the $2,324 gold level rose quickly to test the $2,345 EMA21 price point which is also the short-term target recovery level sent to you in the weekly publication.

Now, with the geopolitical situation becoming more complicated, once gold breaks out of the 21-day EMA and moves above the 21-day moving average and returns to the trend, it is well placed to continue. Technically bullish with a short-term target then aiming for the 0.236% Fibonacci extension and more to the original price of 2,400USD.

On the other hand, EMA21 is also the nearest resistance, which provides expectations for the possibility of a price decrease with a target level at 2,324USD, more at 2,305USD.
During the day, the technical outlook is still leaning towards the possibility of a price decrease in the case of qualifying for the above increase.

Notable prices are listed below.
Support: 2,324 – 2,305USD
Resistance: 2,384 – 2,400USD

🪙SELL XAUUSD | 2380 - 2378

⚰️SL: 2384

⬆️TP1: 2373
⬆️TP2: 2368

🪙BUY XAUUSD | 2306 - 2308

⚰️SL: 2302

⬆️TP1: 2313
⬆️TP2: 2318

Note

🟢Important statements from the Fed...it takes a lot to take one step

Minneapolis Fed President Neel Kashkari told CNBC on Tuesday that the Fed should wait for more significant progress in inflation before considering cutting interest rates.

Note

Get support from Middle East, GOLD recovers, bound by EMA21

Note

- XAUUSD briefly broke below the recent bottom at $2,332 per troy ounce. The price bounced back and has strengthened since then.
- If XAUUSD fails to close above 2,400 USD per troy ounce, the price could retest the support level of 2,300 USD per troy ounce.
- On the contrary, XAUUSD could repeat its all-time high if the price closes above 2,400 USD per troy ounce and challenges 2,450 USD per troy ounce.

Note

🟢The US dollar tops the list of the most profitable major currencies

The US dollar recorded a clear rise and was the largest of the major currencies by up to 0.97%, benefiting from the state of optimism regarding the continuation of high US interest rates for a long period, especially after the statements of a member of the US Federal Reserve from Minneapolis, Neel Kashkari, during his speech at the Global Monetary Policy Forum in London, statements Additional information regarding the course of monetary policy.

Note

🟡GOLD STABILIZES TODAY AND IS HEADING TO END THE MAY SESSIONS AT A HISTORIC LEVEL

Gold prices moved in a narrow range during trading on Friday, as the precious metal witnessed many factors that enhanced its stability in trading. However, gold is heading to achieve weekly and monthly profits for the fourth month in a row.

Note

- DXY has remained in a sideways range of 104.00-105.00 for the past two weeks. The index has not yet shown a potential future direction while still maintaining a sideways momentum.
- If DXY breaks above the 105.00 level, the index could retest the 106.00 resistance level.
- On the contrary, DXY could return to around 104.00, and if broken, could confirm the downtrend.

Note

- The second estimated US GDP growth rate (Q1) reached 1.3% on a quarterly annualized basis (QoQ), indicating that the economy is still growing, albeit a bit slower.
- Meanwhile, markets will be closely watching tonight's Personal Expenditures Price Index (PCE) figures, which could shape their future expectations of the Fed's policy interest rate.
- However, the Fed still gave mixed signals, with some officials issuing tougher statements (hawkish) and others more dovish (dovish).

Note

ISM data have not been able to breathe new life into a series of poor data in the US that put pressure on the USD, and the greenback continues to weaken on a large scale due to falling yields. While orders/inventories continue to weaken, it can also be said that detailed data are not as tight as the "stagflation" speculations after a series of reports over the past few months.

Note

- DXY retested the 105.00 resistance level and could not sustain above this level. The index fell to 104.00.
- If DXY closes below the 104.00 support, the index could return to around 103.00.
- Conversely, DXY could stay in the 104.00-105.00 zone if the index remains above the 104.00 support level.

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