Double Top Pattern in Play

Gold prices were closed at $1903.60 after placing a high of $1905.50 and a low of $1881.90. On Friday, gold settled above $1900 and reached near the end of May with an 8% monthly gain, the most significant return in 10 months. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, rose during the early trading session on Friday and reached 90.44, its highest level since 14th May. However, the dollar could not sustain its upward momentum and started declining during the second half of the day and lost all of its daily gains ending up flat for the session at 90.03. Meanwhile, the U.S. Treasury yields on a 10-year note came under pressure on Friday after rising for the previous two consecutive days and reached 1.57%.

The Dallas Federal Reserve President Robert Kaplan cited reasons for the central bank to start tapering purchases that added strength to the gold prices. Kaplan said that the potential excesses in the housing market and other inflation signs were the indications that the Fed should start slowly pull back on its asset purchase program. He added that the $120 billion worth of asset purchases might be having unintended consequences.

Officials from Federal Reserve have been recently downplaying the rising price pressures and asserted their support to hold monetary policy accommodative for some time. However, Kaplan’s comments to reduce monetary support added strength to the precious metal and supported its daily gains.

On the data front, at 17:30 GMT, the Core PCE Price Index for April rose to 0.7% against the expected 0.6% and supported the U.S. dollar that further caped gains in gold. The Goods Trade Balance dropped to -85.2B against the projected -92.0B and supported the U.S. dollar that limited the rising trend in gold. In April, the Personal Income declined to -13.1% against the forecasted -14.2% and supported the U.S. dollar. The Personal Spending in April remained flat as expected 0.5%.

The Prelim Wholesale Inventories rose to 0.8% against the forecasted 0.7% and weighed on the U.S. dollar, adding further gains in yellow metal prices. At 18:45 GMT, the Chicago PMI surged to 75.2 against the predicted 67.9 and supported the U.S. dollar, and added pressure on rising prices of gold. At 19:00 GMT, the Revised UoM Consumer Sentiment remained flat as expected at 82.9. The revised UoM Inflation Expectations in May also remained flat at 4.6%.

Meanwhile, the U.S. and China’s top trade negotiators held their first meeting under the Biden Presidency. The U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu held a virtual meeting and addressed the significance of the trade relationship between the two countries. Both sides acknowledged that they had agreed to continue their negotiations. The U.S. and China reiterated that the development of bilateral trade was significant. This added a good impression on the market sentiment and added support to bullion.

Gold Intraday Technical Level

Support Resistance

1888.84 1904.44

1880.77 1911.97

1873.24 1920.04

Pivot Point: 1896.37

Gold - XAU/USD - Technical Outlook

On Monday, the precious metal gold consolidates below the double top resistance level of 1,912 level as this level extends strong resistance to gold now. Gold’s immediate support holds around 1,899 levels, and violation of this exposes the previous metal towards 1,900 and 1,894 support. Gold’s resistance level stays at 1,911 and 1,920 today. The leading indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are heading lower towards bearish areas. The crossover of RSI below 50 will add strong bearish pressure on gold. Therefore, bearish bias still dominates today. All the best!

European CPI Figures in Highlights!

The EUR/USD pair was closed at $1.2189 after placing a high of $1.2205 and a low of $1.2132. EUR/USD pair continued its losses for the third consecutive session on Friday but managed to remain a little bullish for the week. The single currency Euro remained under pressure on Friday after worse-than-expected macroeconomic data released. The declining Euro added further pressure on EUR/USD currency pair and added losses for the day. Besides, the U.S. dollar remained firm against its rival currencies on Friday and reached above 90.4 level, adding extra downward pressure on EUR/USD prices. The 10-year note's Treasury yields fell to 1.57% that further caped gains in the U.S. dollar and limited the downside momentum in the EUR/USD.

On the data front, at 11:00 GMT, the German Import Prices surged to 1.4% against the projected 1.0% and supported the single currency Euro and limited the losses in EUR/USD pair. At 11:45 GMT, the French Consumer Spending was declined to -8.3% against the predicted -4.1% and weighed on Euro and added further losses in EUR/USD. The French Prelim CPI in May remained flat as expected 0.3%. The French Prelim GDP for the quarter declined to -0.1% against the estimated 0.4% and weighed on Euro that dragged EUR/USD further on the downside.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index for April surged to 0.7% against the estimated 0.6% and supported the U.S. dollar and extended EUR/USD's losses. The Goods Trade Balance declined to -85.2B against the predicted -92.0B and supported the U.S. dollar and added further EUR/USD pair losses. In April, the Personal Income dropped to -13.1% against the anticipated -14.2% and supported the U.S. dollar and added EUR/USD pair losses. The Personal Spending in April remained flat as forecasted 0.5%.

The Prelim Wholesale Inventories increased to 0.8% against the projected 0.7% and weighed on the U.S. dollar that capped further downward momentum in the currency pair. At 18:45 GMT, the Chicago PMI rose to 75.2 against the anticipated 67.9 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment remained flat as predicted 82.9. The revised UoM Inflation Expectations in May also remained unchanged at 4.6%.

Meanwhile, the losses in EUR/USD were also limited after Europe saw a dramatic fall in coronavirus cases in time for summer. As the vaccination rates were accelerating across Europe, the hopes for a rebirth of the tourism industry in European countries increased. The tourism industry from Spain and Italy alone accounts for 13% of GDP, but it has been wiped out due to pandemics. This week, Europe saw the largest decline in new coronavirus infections and deaths as about 44% of adults had taken at least one dose of vaccine in the region. This added strength in the single currency Ero and limited the declining prices of the EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2172 1.2213

1.2152 1.2236

1.2130 1.2255

Pivot Point: 1.2194

EUR/USD - Technical Outlook

The EUR/USD pair stands still at 1.2193 level, facing a solid resistance at 1.2206 level on Monday. The resistance level is extended by the 20 & 50 periods EMA lines that we can see on the chart above. The pair has concluded series of Doji candlesticks that are suggesting the state of indecision among investors. It looks like the traders are awaiting the Inflation figures from the European countries. The EUR/USD's next support level holds around 1.2170 and the breakout of this exposes the pair towards the 1.2133 level. Likewise, the resistance stays at 1.2205, and upward breakout exposes the pair towards the 1.2263 resistance level today. All the best!

Symmetrical Triangle Pattern!

The DOGE/USD was closed at $0.301850 after placing a high of $0.307660 and a low of $0.289220. DOGE/USD continued its bearish momentum and declined for the 4th consecutive session on Sunday. The losses in Dogecoin were limited throughout the week as the cryptocurrency was continuously getting support from the influencer CEO of Tesla, Elon Musk. On the other hand, the famed investor Stanley Druckenmiller shared his thoughts on Dogecoin as the meme cryptocurrency has recently taken the market by storm. He said that he would not short Dogecoin as he pretends that DOGE doesn’t exist.

He added that he thinks so little of DOGE, and it doesn’t even bother him when it goes up. He said that when the bitcoin used to go up, he would go crazy because he did not own it. Whereas, when Dogecoin goes up, he starts laughing. These comments from a famous investor added pressure on DOGE/USD prices over the weekend.

Moreover, a significant restaurant and convenience store chain in the United States named Sheetz has announced that it will start accepting Dogecoin and select other cryptocurrencies as payment methods via a partnership with crypto payment processor Flexa. This announcement added convenience stores to a growing list of businesses accepting cryptocurrency payments throughout the world. This added further strength in the DOGE/USD and capped additional losses.

Furthermore, the U.S. dollar was also strong on Friday as the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to 90.44 level and added weight on the DOGE/USD prices.

DOGE/USD Intraday Technical Levels

Support Resistance

0.291494 0.309934

0.281137 0.318017

0.273054 0.328374

Pivot Point: 0.299577

DOGE/USD - Technical Outlook

The DOGE/USD pair is trading sideways at the 0.3028 level. On the 4 hour chart, the pair has formed a symmetrical triangle pattern that demonstrates indecision among traders. It looks like the investors are waiting for some solid news to trigger a breakout in Doge. Typically, the symmetrical triangle breakout on either side, depending upon the news release; therefore, the traders will be keeping a closer eye on the pair to capture any significant price action. The DOGE/USD has immediate support at 0.2837, and below this, the next support stays at 0.2477 and 0.2268. Conversely, the resistance holds at 0.3096 and 0.3459. All the best!

Chicago PMI Ahead!

Gold prices were closed at $1896.90 after placing a high of $1903.90 and a low of $1888.30. On Thursday, gold remained steady and flat throughout the day as easing U.S. Treasury yields offset the upbeat U.S. data that showed a recovery in the world's largest economy was on track.

The U.S. Dollar Index gauges the greenback value against the basket of six major currencies closed on Thursday at 90.01 with minor losses for the day. The U.S. Treasury yields on the 10-year note rose to 1.625% on Thursday but eased from daily high and closed the day at 1.60%. The declining U.S. Treasury yields translated into the reduced opportunity cost of holding non-yielding bullion.

On the data front, the long-awaited Prelim GDP in the first quarter declined against the expectations and kept the dollar under pressure that supported gold prices. However, gold failed to provide a significant movement on the day as unemployment claims from last week remained in support of the U.S. dollar. At 17:30 GMT, the Prelim GDP for the quarter declined to 6.4% against the expected 6.5% and weighed on the U.S. dollar that pushed gold prices higher. Last week, the Unemployment Claims dropped to 406K against the forecasted 427K, supported the U.S. dollar, and kept gold under pressure. The Core Durable Goods Orders surged to 1.0% against the projected 0.8%, helped the U.S. dollar, and added further gold prices.

The Durable Goods Orders declined to -1.3% against the predicted 0.8% and weighed on the U.S. dollar, and capped further losses in gold. The Prelim GDP Price Index for the quarter rose to 4.3% against the expected 4.1% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales in April declined to -4.4% against the predicted 0.6% and weighed on the U.S. dollar and added strength in precious metal. Prices of almost everything, from houses to the lumber that goes into building them, have soared to a high level in recent months, and it has scared the economists into believing that inflation on growth in 2021 could be the highest in 35 years.

A higher inflationary environment is considered beneficial for gold as it's considered as a hedge against inflation and a store of value in times of financial and political troubles. However, in recent months, the rivals of gold, including the dollar and U.S. bond yields, have rallied instead on signs of increasing inflation as investors bet that the Fed will hike interest rates faster than projected.

On the flip side, the Central bank has sworn not to increase interest rates until 2023. Such speculation triggered a massive sell-off in gold and sent its prices to an 11-month lowest level below $1674. Nevertheless, the retreat in yields and the weak U.S. dollar helped gold come back to $1800 and above, and now yellow metal has been trying to sustain its foot above the $1900 level.

Gold Intraday Technical Level

Support Resistance

1888.84 1904.44

1880.77 1911.97

1873.24 1920.04

Pivot Point: 1896.37

Gold - XAU/USD - Technical Outlook

On Friday, the precious metal gold hasn't changed a lot amid the lack of major economic events. The metal is trading at a 1,890 level, exhibiting a bearish correction below a 1,912 resistance level. On the 4-hour timeframe, 1,890 level is the same old resistance level that was violated when gold crossed over ascending triangle pattern. At the moment, this level of 1,890 is supporting gold, and a bullish bounce off over this level exposes the pair towards a 1,912 resistance level. The leading indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) support a solid bullish bias. Gold's immediate support holds around 1,891 today, and bullish bias still dominates. All the best!

European Inflation Figures in Highlights!**

The EUR/USD closed at $1.2192 after placing a high of $1.2216 and a low of $1.2175. EUR/USD pair failed to provide any meaningful direction on Thursday as the currency pair moved in a consolidation phase after a corrective decline on Wednesday. The currency pair EUR/USD fluctuated in a narrow range on Thursday amid the mixed data releases. The rising U.S. Treasury yields helped the greenback stay resilient against its rivals. The U.S. dollar index remained above 90 levels however closed its day with minor losses whereas, the U.S. treasury yields on the 10-year note rose above 1.60%.

According to the European Central Bank Governing Council member and President of Bundesbank, Jens Weidmann, it was crucial to keep fiscal support measures targeted and limited in time and put public finances back on a strong footing pandemic. Weidmann added that it must be clear to everyone that the monetary policy will not be put at the service of fiscal policy. He said that the current high level of government intervention in the economy was justifiable in a crisis, but it should not become routine. After these comments, Euro came under slight pressure and kept EUR/USD lower for the day.

At 11:00 GMT, the German GfK Consumer Climate declined to 07.0 against the expected -5.3 and weighed on the single currency Euro that added pressure on EUR/USD pair. From the U.S. side, at 17:30 GMT, the Prelim GDP for the quarter dropped to 6.4% against the estimated 6.5% and weighed on the U.S. dollar and added strength in EUR/USD pair. The Unemployment Claims from last week fell to 406K against the predicted 427K and supported the U.S. dollar that kept EUR/USD pair under pressure. The Core Durable Goods Orders rose to 1.0% against the expected 0.8% and supported the U.S. dollar.

The Durable Goods Orders dropped to -1.3% against the anticipated 0.8% and weighed on the U.S. dollar that capped further EUR/USD pair losses. The Prelim GDP Price Index for the quarter increased to 4.3% against the predicted 4.1% and supported the U.S. dollar. At 19:00 GMT, the Pending Home Sales in April reduced to -4.4% against the estimated 0.6% and weighed on the U.S. dollar that pushed EUR/USD pair higher. On Friday, the European Commission will publish the Consumer Confidence, Business Climate, and Economic Sentiment Indicator for May. The Personal Consumption Expenditure Price Index, Personal Spending, Personal Income, and University of Michigan’s Consumer Sentiment Index data will be released.

EURUSD Intraday Technical Levels

Support Resistance

1.2161 1.2242

1.2130 1.2294

1.2079 1.2324

Pivot Point: 1.2212

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2178 area, having crossed below the 20 & 50 periods EMA extending strong resistance at 1.2209 level for now. On the lower side, an upward trendline is supporting the pair around the 1.2175 level. A bearish breakout of 1.2175 level extends the selling trend until 1.2126 and 1.2064 support levels. The MACD is exhibiting a bearish crossover below 0, and the RSI also holds below 50, suggesting a solid selling trend in the EUR/USD. The EUR/USD’s resistance holds around 1.2209 and 1.2260 levels. Later today, the eyes will remain on the European Inflation figures. All the best!**

20 & 50 EMA Crossover!

The BTC/USD was closed at $38435.0 after placing a high of $40120.0 and a low of $37381.0. Bitcoin declined on Thursday after a new survey suggested that among many complications associated with cryptocurrencies like Bitcoin, a lack of knowledge and understanding of crypto was the biggest obstacle for broader adoption. Furthermore, Iran issued a temporary ban on bitcoin mining until September 22.

About a week ago, the government had enlisted intelligence officers to locate and stop miners who use household electricity. The decision to ban bitcoin mining came after officials blamed crypto mining of digital assets like bitcoin for a series of blackouts across major cities.

Iran moved closer to its peak electricity demand season, and the country previously revealed that some mining operations would be legalized; a lot of illegal crypto mining still goes on behind the scenes. According to the mining map of Cambridge University, Iran was the six-largest contributor to crypto mining activities, responsible for roughly 4% of Bitcoin’s hash rate.

Bitcoin has been badly hit by several restrictions on mining activities lately. China has also announced a nationwide crackdown on BTC mining and Iran, which has been weighing on BTC prices lately.

Last week, a crypto sell-off came after authorities in China and the U.S. moved to tighten regulation and tax compliance on cryptocurrencies. Chinese authorities called on Friday for tighter regulation on crypto mining and trading, and the U.S. Treasury announced Thursday that it would need stricter crypto compliance with the IRS.

Another negative element that came from the market that weighed on Bitcoin prices was the comments from the President of Bianco Research, Jim Bianco. He said that he owns a cryptocurrency asset basket, including Ethereum but has averted from purchasing Bitcoin.

BTC/USD Intraday Technical Levels

Support Resistance

37170.6 39909.6

35906.3 41384.3

34431.6 42648.6

Pivot Point: 38645.3

BTC/USD - Technical Outlook

The BTC/USD is trading with a bearish bias at 37,012 level, crossing below the 20 & 50 EMA. The pair is exhibiting a selling trend on the four hourly timeframes, as it’s holding below both of the EMA. The leading indicators such as the RSI and MACD are holding at 43 and -109, respectively. Bitcoin’s next support stays at 35,350 and 32,250. At the same time, the resistance stays at the 40,415 level. On the higher side, a bullish crossover of 40,415 levels exposes the pair towards 43,598. All the best!

Resistance Becomes Support!

Gold prices were closed at $1896.15 after placing a high of $1913.25 and a low of $1890.75. After rising to its multi-month high level and reaching above the $1910 level, gold faced a correction in price and reversed its course on Wednesday. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies surged on Wednesday and reached above 90 levels, adding losses in the yellow metal prices. However, the U.S. Treasury yields on a 10-year note continued their bearish momentum for the 5th consecutive session and fell to 1.55%.

The U.S. dollar rallied against its rivals for the first time this week as Federal Reserve officials continued pushing down the prospects of rising inflation. The Fed Vice Chair for Supervision Randal Quarles signaled the U.S. Central bank's plans to open talks on easing its bond-buying program as the economy moved towards recovery and prices were increasing. Quarles said it would be necessary for Federal Reserve to begin the discussion in the coming months about the pans to reduce its massive bond purchases as the economy was continuously recovering from the damage triggered by the pandemic.

Meanwhile, Vice Chair Richard Clarida also said that the Fed could limit inflation and engineer a soft-landing without throwing the economy's recovery off track. On Monday, Fed Coard Governor Lael Brainard and the President of the St. Lois Fed, James Bullard, also reiterated the dovish monetary policy stance. The shifting tone at the central bank reflected by many fed officials made the U.S. dollar strong across the board. The three main indexes at Wall Street Journal also moved higher, with Dow Jones Industrial Average rising by 0.03%, S&P 500 increasing by 0.19%, and the NASDAQ Composite rising by 0.59%.

Furthermore, on Tuesday, Washington called for a new round of studies conducted with independent and international experts at the World Health Assembly. The U.S. was urging WHO to trace the origin of coronavirus and demanded a completely transparent process from China.

According to WHO, the global coronavirus cases fell by 14% last week, but the overall infections remained high at near 168 million. Whereas the U.S. hit a big vaccine milestone as half of the adult population is now fully vaccinated.

Gold Intraday Technical Level

Support Resistance

1886.85 1909.35

1877.55 1922.55

1864.35 1931.85

Pivot Point: 1900.05

Gold - XAU/USD - Technical Outlook

The precious metal gold is trading at a 1,899 level, exhibiting a bearish correction below a 1,912 resistance level. On the 4-hour timeframe, 1,890 level is the same old resistance level that was violated when gold crossed over ascending triangle pattern. At the moment, this level of 1,890 is supporting gold, and a bullish bounce off over this level exposes the pair towards a 1,912 resistance level. The leading indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) support a solid bullish bias. Gold's immediate support holds around 1,891 today, and bullish bias still dominates. All the best!

Doji Pattern Over 1.2178 Support!

The EUR/USD pair was closed at $1.2190 after placing a high of $1.2263 and a low of $1.2182. EUR/USD pair dropped on Wednesday after placing gains for the previous 2-consecutive days. A come-back in the U.S. dollar drove the slide in the currency pair. The recovery of the U.S. dollar across the board pushed EUR/USD pair to the downside. The U.S. Dollar Index (DXY) bounced and rose to 90.05 and was up by 0.35%. This rebound in the DXY from a multi-month low level took place even as the U.S. yields were moving downside and the equity prices were rising. The benchmark 10-year U.S. Treasury yield stood at 1.55% on Wednesday.

The strength in the U.S. dollar came in after the Fed officials starting giving hints on easing of bond purchases. On Wednesday, the top Federal Reserve official Randal Quarles signaled that he was ready to open talks on reducing some of the U.S. central bank's emergency support for the economy. Quarles noted that he did not expect a round of 1970s-style breakout inflation. He was fully committed to a new Fed strategy that aims to keep the monetary policy running full-throttle while jobs recover. Meanwhile, the U.S-China jitters surrounding trade deal emerged after a report from the U.S. based Peterson Institute for International Economics showed that Chinese purchases were still running short of the agreed amount as the trade deal between the U.S. and China moved into its second year.

On the other hand, the European Union started legal action against the Anglo-Swedish pharma company last month over complaints that AstraZeneca failed to meet its delivery targets with the bloc. However, AstraZeneca has denied these accusations and said that it would strongly defend itself in court. The EU Commission announced a new vaccine deal with Pfizer and BioNtech earlier this month, encompassing about 900 million doses to be delivered between 2021 and 2023. The EU was expecting 120 million doses of the AstraZeneca vaccine in the first quarter, but it only received about 30 million doses.

On Wednesday, a top EU official has dismissed the idea that Brussels could enter into new contract negotiations with AstraZeneca while a court was currently assessing whether the company breached its existing deal to supply coronavirus vaccines. This also added some downward pressure on EUR/USD pair on Wednesday.

EURUSD Intraday Technical Levels

Support Resistance

1.2161 1.2242

1.2130 1.2294

1.2079 1.2324

Pivot Point: 1.2212

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2198 area, having tested the triple top resistance level of 1.2260. On the 4 hour timeframe, the EUR/USD pair is gaining support at the 1.2178 level, and it has closed a Doji pattern right above this level. The Bullish bounce off over the 1.2178 level leads the pair towards the next resistance area of 1.2250. At the same time, the violation of the 1.2178 level exposes the pair towards 1.2126 and 1.2064 support areas. The overall trading bias is still bearish as the EMA and RSI suggest a selling trend in the EUR/USD pair. All the best!

20 & 50 EMA Crossover!

The BTC/USD was closed at $39301.0 after placing a high of $40497.8 and a low of $38020.2. Bitcoin rose on Wednesday after the head of blockchain and cryptocurrency at PayPal, Jose Fernandez da Ponte, said that the online payments giant would be adding support for transfers of bitcoin off of the platform and to third–party wallets. According to PayPal, they want to make it as open as possible. However, they did not reveal that when exactly the feature will be added.

Furthermore, the chief investment officer of Guggenheim, Scott Minerd, has predicted that there will be more sell-off in bitcoin. He also warned that it would take a while for the digital asset to return to its previous highs. However, for the long-term, Minerd has predicted that bitcoin’s price could rise to $600k.

According to a Wall Street analyst, Tom Lee, bitcoin’s nature is hyper volatile and creates a reward for people. He added that even though bitcoin was in the penalty box, it could still exit the year over $100,000. Moreover, the latest big name in billionaire investors to have an eye on crypto is the legendary Carl Icahn, who said that his firm might get into crypto in a relatively big way. The billionaire investor and founder of Icahn Enterprises said that he does not hold any crypto assets personally. Still, his firm might get involved in a relatively big way as crypto was here to stay in one form or another. After this news, bitcoin saw an impulsive buying, and BTC/USD started rising in value and reached above $40,000.

On the other hand, the officials within the Biden administration were reportedly studying the gaps in cryptocurrency regulations following the latest session of volatility in the market. This sent signals that new rules could soon be proposed.

The White House officials were studying whether digital assets like Bitcoin could be used to finance terrorist activities. They were also investigating whether retail investors should be protected from the extreme price fluctuations of digital asset markets. This report also added strength to bitcoin prices on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

38048.2 40525.8

36795.3 41750.7

35570.5 43003.5

Pivot Point: 39273.0

BTC/USD - Technical Outlook 

The BTC/USD has plunged from recovered from 40,387 level to trade around 38,572 level. On the 4-hour timeframe, the BTC/USD pair has completed 23.6% Fibonacci retracement at 37,572 level and 38.2% retracement at 41,896. For now, it’s trading below 38.2% Fibonacci correction level as it’s extending resistance at 40,415. The bullish bias seems to get weaker for BTC/USD, especially below the 39,9273 pivot point level, as this level will also be working as resistance now. Lastly, the 20 & 50 periods EMA are also in support of a bearish trend today. All the best!

Symmetrical Triangle Violation

Gold prices were closed at $1898.85 after placing a high of $1901.15 and a low of $1873.30. Gold reached its highest since the first week of January and finally broke through the resistance level of $1900 on Tuesday. The weaker dollar caused the recent surge in gold prices after comments from the U.S. Federal Reserve officials calmed fears about inflation. The U.S. dollar faced massive pressure on Tuesday and fell to its new low level after the Federal Reserve officials reaffirmed a dovish monetary policy stance that eased inflation concerns. The dollar fell to 4 and a half month lowest level at 89.5 on Tuesday after investors weighed the soothing words by Fed that faded the tapering worries for the time being.

The U.S. Treasury yield on benchmark 10-year note also fell on Tuesday and reached 1.57%that added further decline in the greenback prices. The treasury yields fell for the fourth consecutive session as participants believed that price pressures would be stable for the rest of the year.

At 18:00 GMT, The Housing Price Index rose to 1.4% against the expected 1.1% and supported the U.S. dollar and further capped gains in gold prices. The S&P/CS Composite-20 HPI for the year also surged to 13.3% against the expected 12.6% and supported the U.S. dollar, and limited the rising prices of gold.

At 18:59 GMT, the Richmond Manufacturing Index declined to 18 against the projected 19 and weighed on the U.S. dollar that pushed gold. At 19:00 GMT, the CB Consumer Confidence in May fell to 117.2 against the forecasted 119.0 and weighed on the U.S. dollar and added further gains in gold prices. The New Home Sales dropped to 863K against the predicted 950K and weighed on the U.S. dollar, and added further upward momentum in yellow prices.

The President of the Federal Reserve Bank of Chicago, Charles Evans, said that the recent rise in U.S. inflation was unlikely to lead to the undesirably high inflation that some notable economists warned about. Instead, he thinks that inflation was temporary. He reiterated his support for the super-easy monetary policy. He said that he had not seen anything yet to persuade him to change his full support to the existing monetary policy.

Furthermore, the Federal Reserve Vice Chair of Supervision, Randal Quarles, said that the U.S. financial regulatory agencies were working together on addressing issues related to cryptocurrency. He added that the overall risks to financial stability were moderate; however, there were still some risks around non-bank financial institutions.

Gold Intraday Technical Level

Support Resistance

1881.05 1908.90

1863.25 1918.95

1853.20 1936.75

Pivot Point: 1891.10

Gold - XAU/USD - Technical Outlook

The strong bullish bias dominates the precious metal gold as its prices soared from 1,889 to 1,908. Currently, the precious metal is trading at 1,906 level, facing strong resistance at 1,908 level. The bullish breakout of 1,908 exposes the metal price towards the next resistance area of 1,929 level. The leading indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) is support solid bullish bias in gold. Gold’s immediate support holds around 1,891 today, and bullish bias still dominates. All the best!