GOLD eases, fundamental support and technical momentumOANDA:XAUUSD fell in early Asian trading on May 30 after Thursday's gains, although it still had room to rise as weak US initial jobless claims data weighed on the US dollar and Trump's tariffs faced more uncertainty.
Gold recovered from a weekly low of $3,245 an ounce on Thursday to break above the $3,300 an ounce mark as weak US initial jobless claims data weighed on the US dollar.
As of press time, gold had fallen below the full price of $3,300, down $23 on the day and around 0.69% .
The number of Americans filing new claims for unemployment benefits rose more than expected last week, adding to pressure on the Federal Reserve to consider cutting interest rates.
Data released on Thursday showed the number of Americans filing new claims for unemployment benefits rose last week, exceeding market expectations. The data showed initial jobless claims in the United States rose by 14,000 to 240,000 in the week ended May 24, compared with estimates of 230,000.
According to the minutes of the Federal Reserve's May 6-7 meeting, policymakers acknowledged that they could face "difficult trade-offs" in the coming months, as both inflation and unemployment rise, raising the risk of a recession. Since gold does not yield interest, it typically performs well in low-interest-rate environments.
Trump Tariff Ruling Overturned
A U.S. trade court ruled on Wednesday that the president lacked the authority to impose tariffs, blocking most of Trump's tariffs, but on Thursday a federal appeals court agreed to the Trump administration's request to suspend the court's ruling.
The U.S. government's request for an immediate administrative stay was granted, and the rulings and permanent injunctions issued by the U.S. Court of International Trade in these cases will be temporarily suspended until further notice while the court reviews the relevant motion documents, the Court of Appeals for the Federal Circuit said in its ruling.
Investors will focus on the US personal consumption expenditure (PCE) price index, the Federal Reserve's preferred inflation gauge, on Friday. Gold is seen as a hedge against inflation during times of economic uncertainty, and higher-than-expected PCE data would benefit the US dollar and reduce the appeal of gold, leading to a possible decline in prices. The opposite effect would be seen if PCE data were lower than expected, which would increase the likelihood of an early rate cut by the Fed, leading to a depreciation of the dollar and gold benefiting from expectations of a low-interest rate environment.
Technical outlook for OANDA:XAUUSD
On the daily chart, gold is down but currently the downside momentum has been limited by the initial support area which is the confluence of EMA21 with Fibonacci retracement 0.382%, this support area has been noted by readers in the publications since the beginning of this trading week.
Temporarily, gold does not have enough technical conditions to be able to increase in price in the short term, because it is still under pressure from the price channel. However, in terms of the overall and long-term trend, gold still has a main trend of increasing price, a trend noted by the price channel.
In terms of momentum, the Relative Strength Index (RSI) is still holding above 50, with the current RSI position at 50 being considered as the nearest support in terms of momentum.
A sustained price action above the 3,300ISD price point would be considered a positive signal, while a break above the channel would qualify the bulls for a short-term target of 3,371USD.
For the day, the technical outlook for gold is bullish and the key points to watch are listed below.
Support: 3,292USD – 3,250USD
Resistance: 3,371USD
SELL XAUUSD PRICE 3342 - 3340⚡️
↠↠ Stop Loss 3346
→Take Profit 1 3334
↨
→Take Profit 2 3328
BUY XAUUSD PRICE 3203 - 3205⚡️
↠↠ Stop Loss 3199
→Take Profit 1 3211
↨
→Take Profit 2 3217
