The US Dollar picks up strong bids early Tuesday amid USD/JPY rebound, trade optimism.
Gold buyers stay hopeful until the 21-day SMA and RSI midline hold fort.
Gold price is back to testing the $3,300 threshold early Tuesday amid resurgent USD demand. However, traders continue to maintain caution, watching the US-China trade talks in London.
Bloomberg reported that trade talks between the US and China will continue into a second day after the first day of talks were fruitful, per US Commerce Secretary Howard Lutnick.
US President Trump said late Monday that “China is not easy but we are doing well with China,” giving no specifics on the key contention topics of shipments of technology and rare earth elements.
Alongside the US-China trade optimism, the latest leg down in Gold price is fuelled by a solid rebound in the USD.
The Greenback is mainly driven by the upswing in the USD/JPY pair after the JPY tumbled on Bank of Japan Governor Kazuo Ueda’s cautious remarks on the interest rates outlook.
The further upside in the Greenback will likely remain limited as traders refrain from placing fresh bets before any decisive outcome from day 2 of US-China trade talks in London.
Markets will also look forward to Wednesday’s US CPI data for fresh direction on the USD and Gold price.
On Monday, the latest Survey of Consumer Expectations conducted by the Fed Bank of New York showed that the year-ahead inflation expectation decreased to 3.2% in May from 3.6% in April.
Daily technical analysis
There are no changes to the short-term technical outlook for Gold price so long as the critical $3,297 level is defended.
That level is the confluence of the 21-day SMA and the 38.2% Fibo level of the April record rally.Further, the 14-day RSI has managed to hold its ground above the midline, currently near 51, supporting the bullish bias.
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 defends critical daily support line, eyeing US-China trade talks
Gold price is back to testing the $3,300 threshold early Tuesday amid resurgent USD demand. However, traders continue to maintain caution, watching the US-China trade talks in London.
Bloomberg reported that trade talks between the US and China will continue into a second day after the first day of talks were fruitful, per US Commerce Secretary Howard Lutnick.
US President Trump said late Monday that “China is not easy but we are doing well with China,” giving no specifics on the key contention topics of shipments of technology and rare earth elements.
Alongside the US-China trade optimism, the latest leg down in Gold price is fuelled by a solid rebound in the USD.
The Greenback is mainly driven by the upswing in the USD/JPY pair after the JPY tumbled on Bank of Japan Governor Kazuo Ueda’s cautious remarks on the interest rates outlook.
The further upside in the Greenback will likely remain limited as traders refrain from placing fresh bets before any decisive outcome from day 2 of US-China trade talks in London.
Markets will also look forward to Wednesday’s US CPI data for fresh direction on the USD and Gold price.
On Monday, the latest Survey of Consumer Expectations conducted by the Fed Bank of New York showed that the year-ahead inflation expectation decreased to 3.2% in May from 3.6% in April.
Daily technical analysis
There are no changes to the short-term technical outlook for Gold price so long as the critical $3,297 level is defended.
That level is the confluence of the 21-day SMA and the 38.2% Fibo level of the April record rally.Further, the 14-day RSI has managed to hold its ground above the midline, currently near 51, supporting the bullish bias.
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.
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