Daily Price Outlook
Gold price continued to attract buyers for the second consecutive day, displaying a modest upward trend during the early European session. Currently trading slightly above $1,930, the XAU/USD has gained around 0.60% for the day. However, it remains comfortably within the broader trading range of Friday and below the support level of the 100-day Simple Moving Average (SMA).
Recent political unrest caused by a Russian mercenary uprising over the weekend has fueled concerns about political stability in the country.
This event has supported the safe-haven status of gold, particularly amidst worries about a global economic slowdown. A dispute between Moscow and the Russian mercenary group Wagner was resolved on Saturday, averting further escalation.
The retreat of heavily armed mercenaries from the city of Rostov has eased tensions. Additionally, the weakening of the US Dollar (USD) has contributed to the positive momentum of XAU/USD.
As no significant economic reports are expected to impact the market on Monday, the previous fundamental backdrop suggests that the XAU/USD may require stronger buying momentum to confirm a near-term bottom formation. Traders may also exercise caution ahead of Federal Reserve Chair Jerome Powell’s upcoming speech on Wednesday.
This week will witness the release of crucial US macroeconomic data, including the Core PCE Price Index, which is the Fed’s preferred inflation gauge. These releases will influence rate hike expectations and provide fresh direction for the gold price.
GOLD Price Chart – Source: Tradingview
GOLD – Technical Analysis
Gold prices are poised for some interesting price movements, showing a minor bullish inclination as indicated by positive stochastic indicators. However, they eagerly await a negative catalyst that could drive the expected bearish wave today, with a target around $1,873.50.
But wait, breaking above $1,929.00 could ignite even more excitement, propelling the price to pursue additional gains and test the level of $1,945.20. Only then might we witness a renewed attempt to decline, adding to the intriguing twists and turns.
For today’s adventurous ride, the anticipated trading range oscillates between the support level of $1,890.00 and the resistance level of $1,925.00. Will gold conquer new heights or face the challenge of downward pressures?
Fasten your seatbelts and let’s uncover today’s trend: Slightly bullish.
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