GOLD Price Analysis – June 01, 2023

Daily Price Outlook

Gold Price (XAU/USD) failed to prolong its winning streak and recently experienced a decline after a brief period of upward movement. Although it initially gained some ground, reaching its weekly high. However, the cautious market sentiment, along with the anticipation of upcoming data and events, has posed challenges to the bullish momentum of gold.

On the other hand, the positive China Caixin Manufacturing PMI is expected to support gold prices and prevent significant declines as China is one of the world’s largest consumers of gold, and any positive economic data from the country can increase the demand for the precious metal.

Vote on US Debt Ceiling and Its Impact on Gold Prices

However, the ongoing vote in Congress to raise the U.S. debt ceiling has remained the primary focus. The House of Representatives has successfully approved the bill. It is now set to proceed to the Senate for the next round of voting. Thus, the impact of this news on gold prices is meaningful.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Outlook

The price of gold is currently demonstrating a mild bullish sentiment near the $1,962 level, after encountering resistance at $1,970. Although it briefly reached $1,975 on the four-hour timeframe, it reversed course and dropped below $1,970, settling around $1,965.

This suggests a weakening of the bullish bias and the potential for sellers to gain control, leading to a decline in the gold price.

On the downside, gold finds immediate support around $1,956, and a breach below this level may push the price towards $1,950. Further downward movement could expose the subsequent support levels at $1,940 or $1,936.

On the other hand, if gold successfully breaks above the $1,970 level and closes above it, the next target levels to watch for are approximately $1,985 or $1,995.