Get support from Middle East, GOLD recovers, bound by EMA21
Updated
Complicated geopolitical developments are counterbalancing the Fed's recent stance to support gold prices. On the one hand, the Fed strengthens the Dollar compared to other major currencies. On the other hand, gold is also supported. Support when potential market risks are likely to flare up and increase the attractiveness of Precious Metals that do not generate yields.
Notable news in the Middle East
According to the British news network "Middle East Eye", citing Israeli media on May 27, Egyptian and Israeli soldiers exchanged fire at the Rafah border gate on the border between Egypt and the Gaza Strip that day. An Egyptian soldier died in the fire.
The incident was first reported by Israel's Channel 13 and Channel 14, which they called "unusual". Regarding details of the incident, it was reported that Egyptian soldiers opened fire on an Israeli truck at the Rafah intersection and Israeli soldiers returned fire. But this statement has not been officially confirmed.
Amid the deteriorating situation in Rafah, this news sent safe-haven gold rapidly higher. However, gold also needs more of these types of impacts to reach its original price of $2,400.
Egypt's independent English-language newspaper Daily News cited sources as saying Egyptian soldiers were affected by last Sunday's "Rafa massacre", in which Israeli bombings destroyed a refugee camp in Rafah, killing 45 Palestinians.
The Israel Defense Forces said a "shooting incident occurred" on the Egyptian border early Monday morning and that it was investigating the incident and that "dialogue with Egypt is ongoing."
A spokesman for the Egyptian Armed Forces also confirmed the exchange of fire late Monday, saying that an Egyptian soldier was killed in the incident.
In addition to closely monitoring the situation taking place in the Middle East, traders also need to pay attention to developments from the ongoing conflict in Ukraine, etc. Basically, traders need to pay attention to everything. Regardless of any major geopolitical developments happening globally, gold is an asset that easily reacts to sudden news on the market.
In recent history, the US-China Trade War, developments in the Middle East at the end of 2019, the Ukraine conflict, and now continuing the war in the Middle East... have all created huge mutations in the world. gold market.
During this trading year, we “traders” need to get used to gold moving 2-3% or more in a day, which will happen even more frequently in the near future.
Every time a conflict shows signs of escalation, the price of gold creates a new era peak!
Analysis of technical prospects for
XAUUSD
Gold is trying to operate around the EMA21 level as it recovers from the technical level of $2,324, which readers noticed in last Friday's edition. However, the recovery momentum is limited with EMA21.
For the gold price to technically qualify for upside, it would at least need to break out and return to operating above the trend and near-term target level followed by the 0.236 trend-following Fibonacci extension %, more than the original price of 2,400USD.
Meanwhile, gold is at risk of a further decline if it sells off below the $2,324 support level with a target then around $2,305 – $2,300. Therefore, open long positions should be considered protecting behind the $2,324 level as a reasonable position.
During the day, the trend of gold price is neutral with price activity intentionally sticking around the EMA21, and the technical levels of interest will be listed as follows.
Support: 2,345 – 2,324USD
Resistance: 2,384 – 2,400USD
🪙SELL XAUUSD | 2389 - 2387
⚰️SL: 2393
⬆️TP1: 2382
⬆️TP2: 2377
🪙BUY XAUUSD | 2345 - 2347
⚰️SL: 2341
⬆️TP1: 2352
⬆️TP2: 2357
Notable news in the Middle East
According to the British news network "Middle East Eye", citing Israeli media on May 27, Egyptian and Israeli soldiers exchanged fire at the Rafah border gate on the border between Egypt and the Gaza Strip that day. An Egyptian soldier died in the fire.
The incident was first reported by Israel's Channel 13 and Channel 14, which they called "unusual". Regarding details of the incident, it was reported that Egyptian soldiers opened fire on an Israeli truck at the Rafah intersection and Israeli soldiers returned fire. But this statement has not been officially confirmed.
Amid the deteriorating situation in Rafah, this news sent safe-haven gold rapidly higher. However, gold also needs more of these types of impacts to reach its original price of $2,400.
Egypt's independent English-language newspaper Daily News cited sources as saying Egyptian soldiers were affected by last Sunday's "Rafa massacre", in which Israeli bombings destroyed a refugee camp in Rafah, killing 45 Palestinians.
The Israel Defense Forces said a "shooting incident occurred" on the Egyptian border early Monday morning and that it was investigating the incident and that "dialogue with Egypt is ongoing."
A spokesman for the Egyptian Armed Forces also confirmed the exchange of fire late Monday, saying that an Egyptian soldier was killed in the incident.
In addition to closely monitoring the situation taking place in the Middle East, traders also need to pay attention to developments from the ongoing conflict in Ukraine, etc. Basically, traders need to pay attention to everything. Regardless of any major geopolitical developments happening globally, gold is an asset that easily reacts to sudden news on the market.
In recent history, the US-China Trade War, developments in the Middle East at the end of 2019, the Ukraine conflict, and now continuing the war in the Middle East... have all created huge mutations in the world. gold market.
During this trading year, we “traders” need to get used to gold moving 2-3% or more in a day, which will happen even more frequently in the near future.
Every time a conflict shows signs of escalation, the price of gold creates a new era peak!
Analysis of technical prospects for
XAUUSD Gold is trying to operate around the EMA21 level as it recovers from the technical level of $2,324, which readers noticed in last Friday's edition. However, the recovery momentum is limited with EMA21.
For the gold price to technically qualify for upside, it would at least need to break out and return to operating above the trend and near-term target level followed by the 0.236 trend-following Fibonacci extension %, more than the original price of 2,400USD.
Meanwhile, gold is at risk of a further decline if it sells off below the $2,324 support level with a target then around $2,305 – $2,300. Therefore, open long positions should be considered protecting behind the $2,324 level as a reasonable position.
During the day, the trend of gold price is neutral with price activity intentionally sticking around the EMA21, and the technical levels of interest will be listed as follows.
Support: 2,345 – 2,324USD
Resistance: 2,384 – 2,400USD
🪙SELL XAUUSD | 2389 - 2387
⚰️SL: 2393
⬆️TP1: 2382
⬆️TP2: 2377
🪙BUY XAUUSD | 2345 - 2347
⚰️SL: 2341
⬆️TP1: 2352
⬆️TP2: 2357
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 currenciesThe 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
Note
🔽The dollar suffers its biggest losses in two weeks after a strong blow from US dataThe US dollar witnessed a significant decline during trading on Thursday, as the green currency erased almost all of its gains from the previous session and recorded its largest daily losses in two weeks despite the preliminary revised higher-than-expected reading of growth data in the United States, as the dollar suffered from the impact of another set of data. Negativity.
Note
🟡GOLD STABILIZES TODAY AND IS HEADING TO END THE MAY SESSIONS AT A HISTORIC LEVELGold 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
Opening the first trading session of the week (June 3, Vietnam time), the world gold price traded at 2,333 USD/ounce, an increase of 6 USD/ounce compared to the closing session of the week.Note
Gold prices decreased slightly by 0.25% in the week from May 27 to 31 and extended the decline for the second consecutive week, in line with other commodities as the market became less optimistic about the possibility of the US cutting interest rates. interest rate multiple times this year due to persistently high inflation.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.
Note
🟢Treasury yields rise as investors weigh economic data➡️U.S. Treasury yields were higher on Wednesday as investors considered the state of the economy amid a series of key data releases.
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