01/06 - Gold is expected to retest next resistance
Updated
Gold prices remained steady this week as the US Dollar's winning streak ended and Treasury yields decreased.
The US legislature is set to pass the debt ceiling deal to avoid a default. The House of Representatives passed it on Wednesday, and it now requires Congress approval.
Traders are closely watching the US ISM Manufacturing PMI and its sub-indices for indications of the Fed's interest rate outlook.
The ISM Manufacturing PMI is expected to decrease slightly to 47.0 in May, indicating continued contraction.
Immediate support will be found if the previous day's low of $1,954 is breached, followed by a test of the psychological level of $1,950.
Gold buyers need to surpass the multi-day highs of $1,975 to challenge the confluence support around $1,990, where the 21 and 50 DMA are located.
The nearest resistance 1972$ has been tested, the next expectation will be found in 1985$. I will consider selling gold in the 1982-1985 price range.
Do you think today's ADP news will cause gold to trend up or down?
The US legislature is set to pass the debt ceiling deal to avoid a default. The House of Representatives passed it on Wednesday, and it now requires Congress approval.
Traders are closely watching the US ISM Manufacturing PMI and its sub-indices for indications of the Fed's interest rate outlook.
The ISM Manufacturing PMI is expected to decrease slightly to 47.0 in May, indicating continued contraction.
Immediate support will be found if the previous day's low of $1,954 is breached, followed by a test of the psychological level of $1,950.
Gold buyers need to surpass the multi-day highs of $1,975 to challenge the confluence support around $1,990, where the 21 and 50 DMA are located.
The nearest resistance 1972$ has been tested, the next expectation will be found in 1985$. I will consider selling gold in the 1982-1985 price range.
Do you think today's ADP news will cause gold to trend up or down?
Note
The House has passed the debt ceiling bill, which has now moved on to the Senate, just a few days before the default deadline.Note
The bill to suspend the $31.4 trillion debt ceiling has been approved by the US House of Representatives.Note
It can be confirmed that the possibility of America defaulting on its debt has been eliminated. The main hindrance was the Republican-controlled US House of Representatives, but they ultimately voted in favor of raising the US debt ceiling. The decision will now move to the Democrat-controlled Senate, where it is expected to pass with ease.Note
On Thursday, the yields of U.S. Treasurys increased as the House passed the Fiscal Responsibility Act on Wednesday, bringing us closer to resolving the debt ceiling crisis. The bill has now progressed to the Senate for further action.Note
Immediate support will be found if the previous day's low of $1,954Note
Gold Sell 1983 -> more than 40pipsNote
God sell 1883-> 1774
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