Gold posted a fairly large intraday drop on 6 June after May’s NFP came in as expected and slightly positive. On the trade front, Donald Trump and Xi Jinping’s call on 5 June, the first since January, seems to have gone well and in-person negotiations between the USA and China were ongoing on 9 June in London. The Russo-Ukrainian war rumbles on with no clear progress in negotiations.
While the fundamental environment in the short term seems at least slightly worse for gold, there are various technical challenges to a significant movement lower. The 50 SMA from Bands is a confirmed dynamic support which the price is currently testing. 9 June’s upward reaction to the latest test of that area was quite strong. While volume has dropped since early April’s turmoil, activity for gold has dropped much less compared to some forex majors such as euro-dollar.
The 61.8% weekly Fibonacci retracement around $3,120 might be a strong area of support in the event of a fairly deep retracement. For now, a move back above $3,400 is questionable unless there’s a significant surprise from Wednesday’s American inflation.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
While the fundamental environment in the short term seems at least slightly worse for gold, there are various technical challenges to a significant movement lower. The 50 SMA from Bands is a confirmed dynamic support which the price is currently testing. 9 June’s upward reaction to the latest test of that area was quite strong. While volume has dropped since early April’s turmoil, activity for gold has dropped much less compared to some forex majors such as euro-dollar.
The 61.8% weekly Fibonacci retracement around $3,120 might be a strong area of support in the event of a fairly deep retracement. For now, a move back above $3,400 is questionable unless there’s a significant surprise from Wednesday’s American inflation.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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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.
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.