GOLD trades with caution as US-China trade talks loom
Gold price extends losing streak into early Monday, awaits US-China trade talks.
The US Dollar reverses Nonfarm Payrolls-led gains, bracing for May CPI inflation.
Gold price turns south after facing rejection at the key daily resistance at $3,377.
Gold buyers stay hopeful until the 21-day SMA and RSI midline are defended.
Gold price is battling the $3,300 threshold early Monday amid a bearish start to a critical week. Traders eagerly await the US-China trade talks on Monday and Wednesday’s US consumer inflation data for a fresh trading impetus in Gold price.
Gold price is trading on thin ice even as the USD loses ground following a steep advance led by the above forecasts US NFPdata on Friday.The headline NFP data showed that the US economy added 139,000 jobs in May after reporting a revised 147,000 job gain in April, beating estimates of a 130,000 print.
Strong US employment data eased expectations of more than two interest rate cuts by the US Fed this year, justifying the central bank’s prudent approach while lifting the USD at the expense of the Gold price.
In Monday’s trading so far, the Greenback is feeling the angst of the worsening riots in LA over immigration issues.Additionally, USD markets stay unnerved ahead of the much-awaited US-China trade talks due later in the day.
Traders also resort to adjusting their USD positions ahead of the key US CPI data slated for release on Wednesday. The ongoing spat between Trump and Space X founder Elon Musk also remains a headwind for the buck.
Looking ahead, further optimism on the US-China trade front could fuel a fresh leg down in Gold price. However, the downside could remain limited amid US political and civil concerns while the Russia-Ukraine geopolitical escalation could also remain supportive of the traditional safe-haven Gold price.China’s disinflation and widening trade surplus data have little to no impact on the bright metal, as yet. China is the world’s top Gold consumer.
Daily technical analysis
According to the short-term technical outlook, Gold price’s bullish bias remains in place.
Buyers continue to defend the confluence of the 21-day SMA and the 38.2% FFibo level of the April record rally at $3,297.Meanwhile, the 14-day RSI is holding above the midline, adding credence to the bullish potential.
Gold sellers need a daily candlestick closing below the abovementioned strong support at $3,297 to challenge the 50-day SMA cap at $3,262.The last line of defense for buyers is aligned at $3,232, the 50% Fibo level of the same ascent.
On the flip side, Gold buyers will likely find strong offers at the $3,350 psychological level if the rebound gathers strength.
The next resistance is spotted at the 23.6% Fibo resistance at $3,377, above which the May high of $3,439 could be threatened.
GOLD trades with caution as US-China trade talks loom
Gold price is battling the $3,300 threshold early Monday amid a bearish start to a critical week. Traders eagerly await the US-China trade talks on Monday and Wednesday’s US consumer inflation data for a fresh trading impetus in Gold price.
Gold price is trading on thin ice even as the USD loses ground following a steep advance led by the above forecasts US NFPdata on Friday.The headline NFP data showed that the US economy added 139,000 jobs in May after reporting a revised 147,000 job gain in April, beating estimates of a 130,000 print.
Strong US employment data eased expectations of more than two interest rate cuts by the US Fed this year, justifying the central bank’s prudent approach while lifting the USD at the expense of the Gold price.
In Monday’s trading so far, the Greenback is feeling the angst of the worsening riots in LA over immigration issues.Additionally, USD markets stay unnerved ahead of the much-awaited US-China trade talks due later in the day.
Traders also resort to adjusting their USD positions ahead of the key US CPI data slated for release on Wednesday. The ongoing spat between Trump and Space X founder Elon Musk also remains a headwind for the buck.
Looking ahead, further optimism on the US-China trade front could fuel a fresh leg down in Gold price. However, the downside could remain limited amid US political and civil concerns while the Russia-Ukraine geopolitical escalation could also remain supportive of the traditional safe-haven Gold price.China’s disinflation and widening trade surplus data have little to no impact on the bright metal, as yet. China is the world’s top Gold consumer.
Daily technical analysis
According to the short-term technical outlook, Gold price’s bullish bias remains in place.
Buyers continue to defend the confluence of the 21-day SMA and the 38.2% FFibo level of the April record rally at $3,297.Meanwhile, the 14-day RSI is holding above the midline, adding credence to the bullish potential.
Gold sellers need a daily candlestick closing below the abovementioned strong support at $3,297 to challenge the 50-day SMA cap at $3,262.The last line of defense for buyers is aligned at $3,232, the 50% Fibo level of the same ascent.
On the flip side, Gold buyers will likely find strong offers at the $3,350 psychological level if the rebound gathers strength.
The next resistance is spotted at the 23.6% Fibo resistance at $3,377, above which the May high of $3,439 could be threatened.
Categories
Recent Posts
GOLD recovers on US-Iran ceasefire hopes, but a Bear Cross looms
GOLD risks pullbacks amid oversold conditions, Gulf war
GOLD crumbles as Gulf war escalates; is a turnaround coming?
LIKE THIS ARTICLE? SHARE IT!
Ready to trade?
Unleash your trading skills with your Maxain account today!
Easy funding & withdrawals
No deposit fees