GOLD buyers struggle even as geopolitical risks linger
Gold price licks its wounds while challenging $3,300 early Wednesday.
The US Dollar regains traction alongside Treasury yields as trade and bond market tensions ease.
Gold buyers challenge critical daily support while RSI holds above the midline.
Gold price is trying hard to defend the critical daily support line near $3,295 early Wednesday, as the focus now shifts toward the Minutes of the US Fed May policy meeting.Easing trade and bond market concerns offered the much-needed respite to the USD, enabling a deeper correction in the USD-denominated Gold price from two-week highs of $3,366 set last week.
Gold price briefly tested levels sub-$3,300 on a positive shift in risk sentiment, spurred by US President Trump’s backtracking on 50% tariffs announced Friday on EU imports from June 1, extending the deadline to July 9.
Meanwhile, global bond markets breathed a sigh of relief on reports that Japan is considering trimming super-long bond issuance amid spiking 30-year JGB yields.This fuelled a sharp decline in the US Treasury bond yields but Gold price failed to benefit due to hawkish Fed commentary and upbeat US Consumer Confidence data.
The Conference Board said on Tuesday its Consumer Confidence Index rose to 98.0 this month, courtesy of the temporary US-China trade truce.Meanwhile, Minneapolis Fed President said on Tuesday that he supports the stance to maintain interest rates until there is some more clarity on the impact of higher tariffs on inflation.
Heading toward the Fed Minutes release, Gold buyers are struggling amid a sustained US Dollar recovery and rebounding US Treasury bond yields.Buyers are unable to find any inspiration from escalating Russia-Ukraine geopolitical tensions.
Daily technical analysis
The short-term technical outlook could remain in favor of Gold price optimists if the 14-day RSI continues to hold ground above the midline.
Buyers also need to defend a powerful demand area near $3,295, which is the confluence of the 21-day SMA and the 38.2% Fibo of the April record rally, to keep the upside potential intact.
If sellers flex their muscles, a test of the 50% Fibo support at $3,232 will be inevitable, below which the 50-day SMA at $3,217 will come into play.
Conversely, a sustained break above the $3,350 psychological level is needed to resume the uptrend.
Further up, the $3,365-$3,375 confluence area will be tested. The zone is the confluence of the falling trendline resistance and the 23.6% Fibo level of the April record rally.
The next topside targets are aligned at $3,400 (round level) and $3,435 (static resistance).
GOLD buyers struggle even as geopolitical risks linger
Gold price is trying hard to defend the critical daily support line near $3,295 early Wednesday, as the focus now shifts toward the Minutes of the US Fed May policy meeting.Easing trade and bond market concerns offered the much-needed respite to the USD, enabling a deeper correction in the USD-denominated Gold price from two-week highs of $3,366 set last week.
Gold price briefly tested levels sub-$3,300 on a positive shift in risk sentiment, spurred by US President Trump’s backtracking on 50% tariffs announced Friday on EU imports from June 1, extending the deadline to July 9.
Meanwhile, global bond markets breathed a sigh of relief on reports that Japan is considering trimming super-long bond issuance amid spiking 30-year JGB yields.This fuelled a sharp decline in the US Treasury bond yields but Gold price failed to benefit due to hawkish Fed commentary and upbeat US Consumer Confidence data.
The Conference Board said on Tuesday its Consumer Confidence Index rose to 98.0 this month, courtesy of the temporary US-China trade truce.Meanwhile, Minneapolis Fed President said on Tuesday that he supports the stance to maintain interest rates until there is some more clarity on the impact of higher tariffs on inflation.
Heading toward the Fed Minutes release, Gold buyers are struggling amid a sustained US Dollar recovery and rebounding US Treasury bond yields.Buyers are unable to find any inspiration from escalating Russia-Ukraine geopolitical tensions.
Daily technical analysis
The short-term technical outlook could remain in favor of Gold price optimists if the 14-day RSI continues to hold ground above the midline.
Buyers also need to defend a powerful demand area near $3,295, which is the confluence of the 21-day SMA and the 38.2% Fibo of the April record rally, to keep the upside potential intact.
If sellers flex their muscles, a test of the 50% Fibo support at $3,232 will be inevitable, below which the 50-day SMA at $3,217 will come into play.
Conversely, a sustained break above the $3,350 psychological level is needed to resume the uptrend.
Further up, the $3,365-$3,375 confluence area will be tested. The zone is the confluence of the falling trendline resistance and the 23.6% Fibo level of the April record rally.
The next topside targets are aligned at $3,400 (round level) and $3,435 (static resistance).
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