Gold price corrects for the second session in a row – ForTrader.org financial magazine


Current dynamics

Gold prices are declining for the second session in a row, retreating from record highs since the beginning of the year and testing the 1900.00 mark for a breakdown.

Investors are fixing long positions in the instrument amid the publication of upbeat macroeconomic statistics from the US, as well as ahead of the release of the US labor market report for May on Friday. Additional pressure on the quotes was exerted by the yield of US Treasury bonds, which resumed growth. In turn, gold is still in high demand against the background of existing inflationary risks, which are almost completely ignored by the US Federal Reserve.

Today investors expect the publication of the monthly economic review, the so-called “Beige Book”, which is likely to be able to further support the “bullish” sentiment in the US currency.

Support and resistance levels

Bollinger Bands on the daily chart are showing steady growth. The price range is actively narrowing, reflecting the emergence of mixed trading dynamics in the short / super short term. The MACD indicator turned down, forming a new sell signal (the histogram is below the signal line). Stochastic is showing a similar trend, retreating from its highs, signaling overbought gold in the ultra-short term.

You should take a closer look at the possibility of developing a full-fledged downtrend in the nearest time intervals.

  • Resistance levels: 1916.36, 1935.00, 1952.53, 1966.25
  • Support levels: 1900.00, 1882.10, 1863.34, 1850.00

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Libertex [CPS] WW

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