Gold Prices Consolidate After Eventful Week
Gold prices trade little changed on Monday as investors continue to ponder last week's central banks' decisions while US markets are closed in observance of the Juneteenth holiday.
At the time of writing, the spot price, XAU/USD, is trading at the $1,950/oz area, 0.29% lower on the day. From a broader perspective, the XAU/USD has spent the last few weeks in a consolidative pattern between the 100-day SMA and the $1,985 zone.
On Wednesday, Federal Reserve Chair Jerome Powell will testify on monetary policy before US Congress, which could shed some light on the Fed's mindset and trigger some reaction on USD pairs. The Federal Open Market Committee (FOMC) decided to skip a rate hike last week for the first time after ten increases, while the dot plot hinted at two more rate raises. For the July meeting, a rate increase is over 70% priced in. Fed speakers will have their chance to fully convince markets in the coming weeks.
Elsewhere, US bond and stock markets remain closed on Monday and will resume activity on Tuesday.
From a technical perspective, the XAU/USD pair's short-term outlook remains slightly bullish, although rangebound trading has left indicators flat on the daily chart, showing a lack of momentum.
On the upside, the yellow metal needs to consolidate above the top of the range at the $1,985 area en route to the $2,000 level. Beyond, the record highs at the $2,070-75 zone will come back into play.
On the other hand, the loss of the 100-day SMA, currently at $1,940, would expose the $1,925 horizontal support ahead of the $1,900 area.
At the time of writing, the spot price, XAU/USD, is trading at the $1,950/oz area, 0.29% lower on the day. From a broader perspective, the XAU/USD has spent the last few weeks in a consolidative pattern between the 100-day SMA and the $1,985 zone.
On Wednesday, Federal Reserve Chair Jerome Powell will testify on monetary policy before US Congress, which could shed some light on the Fed's mindset and trigger some reaction on USD pairs. The Federal Open Market Committee (FOMC) decided to skip a rate hike last week for the first time after ten increases, while the dot plot hinted at two more rate raises. For the July meeting, a rate increase is over 70% priced in. Fed speakers will have their chance to fully convince markets in the coming weeks.
Elsewhere, US bond and stock markets remain closed on Monday and will resume activity on Tuesday.
From a technical perspective, the XAU/USD pair's short-term outlook remains slightly bullish, although rangebound trading has left indicators flat on the daily chart, showing a lack of momentum.
On the upside, the yellow metal needs to consolidate above the top of the range at the $1,985 area en route to the $2,000 level. Beyond, the record highs at the $2,070-75 zone will come back into play.
On the other hand, the loss of the 100-day SMA, currently at $1,940, would expose the $1,925 horizontal support ahead of the $1,900 area.
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