Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 25, 2024
Gold

Daily Price Outlook

- Pivot Point $2325.63 is critical for bullish momentum.

- Immediate Resistance at $2335.29, a potential upward target.

- Immediate Support at $2317.83, crucial for stabilizing decline.

Gold (XAU/USD) is trading at $2326.64, reflecting a slight decline of 0.27%. The 4-hour chart reveals the pivot point at $2325.63, serving as a critical level for traders. Immediate resistance is identified at $2335.29, with further resistance levels at $2346.16 and $2355.37. These levels suggest potential upward movement if gold prices break above them.

On the downside, immediate support is seen at $2317.83, followed by $2307.61 and $2296.11. These support levels indicate where the price might find stability if it continues to decline.

The Relative Strength Index (RSI) at 42 indicates a neutral market sentiment, leaning slightly towards the oversold territory, which could potentially lead to a rebound if buying interest increases.

The 50-day Exponential Moving Average (EMA) stands at $2337.14, acting as a significant resistance level. A break above this EMA would indicate a shift towards bullish momentum, supporting a potential upward trend.

The overall outlook for gold remains cautiously bullish above the pivot point of $2325.63. Traders should consider buying above $2326, with a target of $2340 and a stop loss at $2315. However, maintaining a position below the pivot point could drive a sharp selling trend.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2326

Take Profit – 2340

Stop Loss – 2315

Risk to Reward – 1: 1.27

Profit & Loss Per Standard Lot = +$1400/ -$1100

Profit & Loss Per Mini Lot = +$140/ -$110

GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 24, 2024
Gold

Daily Price Outlook

- Immediate resistance for Gold at $2336.56, $2347.82, $2358.70.

- Support levels at $2317.83, $2307.61, and $2296.11 are critical.

- RSI at 44 indicates a slightly bearish sentiment; cautious bullish outlook above $2342.00.

Gold (XAU/USD) is currently trading at $2329.705, showing a modest increase of 0.19%. The pivot point, marked at $2342.00, serves as a critical level for future price movements. Immediate resistance is identified at $2336.56, followed by $2347.82 and $2358.70.

These resistance levels suggest potential upward targets, indicating a bullish sentiment if the price breaks above the pivot point.

On the downside, immediate support is observed at $2317.83, with further support levels at $2307.61 and $2296.11. These levels are crucial in preventing a sharp decline, providing key entry points for long positions.

The Relative Strength Index (RSI) stands at 44, indicating a slightly bearish sentiment. However, the 50-day Exponential Moving Average (EMA) at $2335.58 suggests that the current price is below this average, which might act as a resistance level in the short term.

Technical indicators imply a cautious bullish outlook for gold. Traders should consider a buy position above $2326, targeting a take profit at $2342. A stop loss at $2314 is recommended to mitigate potential losses.

Conclusion: Gold's technical setup suggests a potential bullish trend above the pivot point of $2342.00.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Buy Above 2326

Take Profit – 2342

Stop Loss – 2314

Risk to Reward – 1: 1.89

Profit & Loss Per Standard Lot = +$1600/ -$1200

Profit & Loss Per Mini Lot = +$160/ -$120

GOLD

Technical Analysis

GOLD Price Analysis – June 24, 2024

By LonghornFX Technical Analysis
Jun 24, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) started the new week on a bullish track and gained significant traction around the 2,325 level, hitting an intraday high of 2,332.

However, the bullish movement is largely due to heightened expectations of a Federal Reserve rate cut in September, which has put downward pressure on US Treasury bond yields, thereby supporting gold prices.

In the meantime, a risk-averse market sentiment, ongoing geopolitical tensions, and political instability in Europe have all played roles in driving the demand for gold as a safe-haven asset. On the other hand, stronger-than-anticipated US PMI figures have bolstered the US dollar, limiting further gains in gold prices.

Gold Price Boosted by Fed Rate Cut Expectations Amid Market Uncertainty

Despite the stronger-than-expected US PMIs and the Federal Reserve's unexpectedly hawkish stance, the US dollar failed to sustain its upward momentum and turned bearish. This shift is likely due to growing market expectations of a Fed rate cut in September.

Although the Federal Reserve has projected only one rate cut in 2024, market participants are anticipating the possibility of two cuts this year due to signs of easing inflation. The CME Group's FedWatch Tool indicates that there is currently more than a 60% chance that the Federal Reserve will start cutting interest rates at its September meeting.

This expectation is putting pressure on US Treasury bond yields and supporting the rise in gold prices.

Looking ahead, traders seem cautious and are likely to stay on the sidelines in anticipation of this week's significant US macroeconomic data releases, which include the final Q1 GDP figures and the Personal Consumption Expenditures (PCE) Price Index.

During this time, market participants will pay close attention to statements from key FOMC members for potential short-term trading cues.

On the data front, the US composite PMI rose slightly from 54.5 in May to 54.6 this month, marking its highest level since April 2022 and indicating a strong finish to the second quarter for the economy. Input prices declined to 56.6 from 57.2 previously, while output prices also slowed to 53.5, showing some of the smallest increases in four years.

As a result, the price of gold received a boost from heightened expectations of Federal Reserve interest rate cuts, driven by easing inflation worries and a weaker US dollar. This trend was further supported by market volatility and the anticipation surrounding upcoming significant economic data releases.

Geopolitical tensions and political uncertainty have strengthened gold's appeal as a safe-haven asset.

On the geopolitical front, the security agreement between Russian President Vladimir Putin and North Korean leader Kim Jong-un in Pyongyang has intensified tensions, raising concerns about potential escalation in geopolitical risks.

Moreover, French President Emmanuel Macron's declaration of snap elections has sparked fears of heightened political instability in Europe.

Therefore, the geopolitical tensions from the Russia-North Korea pact and European political uncertainty could bolster demand for gold as a safe-haven asset amid heightened global instability.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Gold (XAU/USD) is currently trading at $2329.705, showing a modest increase of 0.19%. The pivot point, marked at $2342.00, serves as a critical level for future price movements. Immediate resistance is identified at $2336.56, followed by $2347.82 and $2358.70.

These resistance levels suggest potential upward targets, indicating a bullish sentiment if the price breaks above the pivot point.

On the downside, immediate support is observed at $2317.83, with further support levels at $2307.61 and $2296.11. These levels are crucial in preventing a sharp decline, providing key entry points for long positions.

The Relative Strength Index (RSI) stands at 44, indicating a slightly bearish sentiment. However, the 50-day Exponential Moving Average (EMA) at $2335.58 suggests that the current price is below this average, which might act as a resistance level in the short term.

Technical indicators imply a cautious bullish outlook for gold. Traders should consider a buy position above $2326, targeting a take profit at $2342. A stop loss at $2314 is recommended to mitigate potential losses.

Conclusion: Gold's technical setup suggests a potential bullish trend above the pivot point of $2342.00.

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GOLD Price Analysis – June 21, 2024

GOLD

Technical Analysis

GOLD Price Analysis – June 21, 2024

By LonghornFX Technical Analysis
Jun 21, 2024
Gold

Daily Price Outlook

Gold price (XAU/USD) maintained its upward trend and remained well bid above the 2,362 level, hitting an intraday high of 2,368 level. However, the reason for its upward trend can be attributed to combination of factors including a weaker US dollar. The US dollar dropped following recently released disappointing US economic data. This reinforced market expectations that the Federal Reserve will soon start its interest rate cuts program.

Apart from this, rising concerns about the US economy led to a risk-off sentiment in markets, which increased demand for gold as a safe-haven asset, further supporting its higher prices.

Impact of US Economic Trends and Fed Policy on Gold Prices

On the US front, the broad-based US dollar has been flashing red and remains under pressure due to recently released disappointing economic data. This has strengthened expectations that the Federal Reserve will soon begin easing its policies. Although Fed officials initially indicated a preference for maintaining higher interest rates, market sentiment has shifted.

Investors now believe there is a strong possibility of an interest rate cut at the next policy meeting, but they only expect one cut to occur this year. This anticipated policy shift is a response to the weakening economic indicators and the need to stimulate economic growth.

Minneapolis Fed President Neel Kashkari's remarks indicate confidence in the economy's strength but suggest a prolonged timeline of one to two years to achieve the Federal Reserve's inflation target of 2%. This suggests a cautious approach to inflation management despite overall economic health.

Richmond Fed President Tom Barkin highlighted the Fed's readiness to employ various policy tools to address economic challenges. His emphasis on adapting policies based on current economic data underscores the Fed's flexibility and responsiveness in navigating uncertainties and ensuring economic stability amidst evolving conditions.

On the economic data front, the US Department of Labor reported that new applications for unemployment benefits dropped to 238,000 in the week ending June 15, slightly surpassing the expected 235,000. Meanwhile, the Commerce Department's Census Bureau indicated a 5.2% decline in Housing Starts for May, falling to a seasonally adjusted annual rate of 982,000 units. Building Permits also decreased by 2.9% to 949,000 units during the same period.

Additionally, the Philadelphia Fed Manufacturing Index unexpectedly fell to 1.3 in June from 4.5 the previous month, marking its fifth consecutive month in positive territory despite the decrease.

Therefore, the weakening US dollar and potential Fed rate cuts amid mixed economic data could support gold prices by lowering the dollar's value and signaling economic uncertainty, bolstering safe-haven demand for precious metals.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Gold (XAU/USD) is trading at $2363.585, up 0.15% in the early European session. The pivot point at $2365.503, marked by the green line, is critical for short-term trading strategies. Immediate resistance levels are observed at $2372.585, $2378.588, and $2387.253. These levels indicate where bullish momentum might encounter selling pressure. On the downside, immediate support is at $2355.424, followed by $2347.821 and $2338.626. These support levels could act as potential buy zones if the price declines.

Technical indicators reveal that the Relative Strength Index (RSI) stands at 66, suggesting the asset is approaching overbought territory. The 50-day Exponential Moving Average (EMA) is positioned at $2332.486, indicating an underlying bullish trend as the current price is above this average. This technical setup suggests that gold has upward momentum, but caution is warranted as it nears resistance levels.

Given this outlook, traders might consider selling below the pivot point of $2365, with a take profit target at $2350 and a stop loss at $2372. This strategy is supported by the immediate resistance just above the pivot point and the overbought RSI indicating potential for a pullback.

In summary, gold's current price action is influenced by technical levels that are crucial for short-term traders. The immediate resistance at $2372.585 and the support at $2355.424 will be key in determining the next direction for gold prices.

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GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 21, 2024
Gold

Daily Price Outlook

- Gold price stands at $2363.585, up 0.15%, with key pivot at $2365.503.

- Immediate resistance levels: $2372.585, $2378.588, and $2387.253; support levels: $2355.424, $2347.821, $2338.626.

- RSI at 66 and 50-day EMA at $2332.486 suggest caution near resistance.

Gold (XAU/USD) is trading at $2363.585, up 0.15% in the early European session. The pivot point at $2365.503, marked by the green line, is critical for short-term trading strategies. Immediate resistance levels are observed at $2372.585, $2378.588, and $2387.253. These levels indicate where bullish momentum might encounter selling pressure. On the downside, immediate support is at $2355.424, followed by $2347.821 and $2338.626. These support levels could act as potential buy zones if the price declines.

Technical indicators reveal that the Relative Strength Index (RSI) stands at 66, suggesting the asset is approaching overbought territory. The 50-day Exponential Moving Average (EMA) is positioned at $2332.486, indicating an underlying bullish trend as the current price is above this average. This technical setup suggests that gold has upward momentum, but caution is warranted as it nears resistance levels.

Given this outlook, traders might consider selling below the pivot point of $2365, with a take profit target at $2350 and a stop loss at $2372. This strategy is supported by the immediate resistance just above the pivot point and the overbought RSI indicating potential for a pullback.

In summary, gold's current price action is influenced by technical levels that are crucial for short-term traders. The immediate resistance at $2372.585 and the support at $2355.424 will be key in determining the next direction for gold prices.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2365

Take Profit – 2350

Stop Loss – 2372

Risk to Reward – 1: 2.14

Profit & Loss Per Standard Lot = +$1500/ -$700

Profit & Loss Per Mini Lot = +$150/ -$70

GOLD

Daily Trade Ideas

GOLD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 20, 2024
Gold

Daily Price Outlook

- Gold (XAU/USD) rises to $2342.35, up 0.68%, driven by geopolitical tensions.

- Pivot point at $2350.00; key resistance at $2350.76, $2362.70, $2372.59.

- RSI at 63; 50 EMA at $2319.30 provides strong support.

Gold (XAU/USD) continues to display upward momentum, currently trading at $2342.35, marking a 0.68% increase. The 4-hour chart reveals critical technical levels that traders should monitor closely. The pivot point at $2350.00 serves as a crucial indicator for the next price movement. Immediate resistance levels are observed at $2350.76, followed by $2362.70 and $2372.59. These resistance points will act as significant barriers if the price attempts to rise further.

On the downside, immediate support is noted at $2327.03, with further support levels at $2316.85 and $2308.16. These support levels are essential for preventing further declines in the price.

Technical Indicators:

    The bullish outlook is reinforced by the overall positive sentiment in the market, driven by geopolitical tensions and economic uncertainties, which have traditionally bolstered the appeal of gold as a safe-haven asset.

    Conclusion:

    For traders looking to capitalize on the current trend, an entry price above $2337 is recommended. The take profit level is set at $2350, with a stop loss at $2326 to manage potential downside risks.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD (XAU/USD) - Trade Ideas

    Entry Price – Buy Above 2337

    Take Profit – 2350

    Stop Loss – 2326

    Risk to Reward – 1: 2

    Profit & Loss Per Standard Lot = +$1300/ -$1100

    Profit & Loss Per Mini Lot = +$130/ -$110

    GOLD

    Technical Analysis

    GOLD Price Analysis – June 20, 2024

    By LonghornFX Technical Analysis
    Jun 20, 2024
    Gold

    Daily Price Outlook

    Despite the bullish US dollar and risk-on sentiment, the safe-haven gold has maintained its upward momentum, staying well bid around the $2,343 level and reaching an intraday high of $2,345. This upward trend can be attributed to geopolitical tensions and uncertainty in financial markets, which have increased demand for safe-haven assets like gold. Furthermore, the previously released weaker-than-expected Retail Sales have fueled speculation of US Federal Reserve (Fed) rate cuts later this year, weighing on the US dollar and contributing to gold's gains.

    Looking ahead, investors will focus on several key economic indicators and events in the United States. These include the release of weekly Initial Jobless Claims, Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and a speech by Fed official Neel Kashkari on Thursday. Additionally, on Friday, attention will turn to the preliminary US S&P Global PMI reports for June.

    Bullish US Dollar Limits Gold's Upside Amidst Reduced Rate Cut Expectations

    Despite earlier expectations and speculation of Federal Reserve interest rate cuts due to weaker Retail Sales data and concerns about economic slowdown, the US dollar is gaining momentum. This was supported by signs of easing inflation and a stabilizing economy. Moreover, an uptick in US Treasury bond yields has increased demand for the USD, contrasting with previous expectations of rate cuts, which typically weaken a currency.

    However, the Fed's revised projection of one rate cut this year, down from earlier expectations of three, has further bolstered Treasury yields and limited gold's upward potential. Therefore, the strong US dollar, fueled by diminished expectations of Federal Reserve rate cuts and positive economic indicators, is putting downward pressure on gold prices. Investors are preferring the dollar over precious metals amid economic uncertainty.

    Geopolitical Tensions Drive Investors to Safe-Haven Assets

    On the geopolitical front, the long-lasting tensions between Israel and Gaza show no signs of slowing down. This can be witnessed by the recent Israeli attacks near the Karem Abu Salem aid crossing in Rafah, which resulted in nine deaths and 30 injuries among civilians awaiting aid trucks.

    In Gaza, recent Israeli military actions have claimed 24 lives and left 71 injured, according to the enclave’s Health Ministry. Additionally, a United Nations commission has accused Israeli authorities of committing war crimes and crimes against humanity amid the conflict, which has already resulted in over 37,000 deaths and more than 85,000 injuries since October 7.

    Therefore, heightened tensions and the humanitarian crisis in Gaza have driven investors towards safe-haven assets like gold, influencing its price amidst geopolitical uncertainty and escalating conflict in the region.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD (XAU/USD) - Technical Analysis

    Gold (XAU/USD) is trading at $2331.94, up 0.03%, as it navigates a range-bound environment. The 4-hour chart highlights a pivot point at $2342.00, crucial for assessing the next price movement. Immediate resistance is at $2339.37, followed by $2353.95 and $2369.24. These levels are critical for any bullish advance.

    On the downside, immediate support is found at $2308.16, with further support at $2297.24 and $2287.04. These levels are significant to prevent deeper declines. The Relative Strength Index (RSI) is at 59, indicating moderate momentum without overbought conditions, suggesting room for further movement.

    The 50-day Exponential Moving Average (EMA) at $2320.59 provides substantial support, reinforcing the current price level. The overall outlook for gold remains cautiously bullish above the $2342.00 pivot point.

    A break above this level could enhance bullish momentum, targeting the higher resistance levels. Conversely, a drop below immediate support at $2308.16 might trigger further selling pressure.

    The strategic entry point is set to buy above $2326, with a take profit target at $2342 and a stop loss at $2318. This setup aims to capitalize on potential upward movements while managing downside risks.

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    GOLD

    Technical Analysis

    GOLD Price Analysis – June 19, 2024

    By LonghornFX Technical Analysis
    Jun 19, 2024
    Gold

    Daily Price Outlook

    Despite the bearish US dollar, the price of Gold (XAU/USD) failed to stop its downward trend and remains under pressure around the $2,328 level and hitting an intraday low of $2,335. However, the decline can be attributed to the upbeat market sentiment, which undermined safe-haven assets like Gold. On the flip side, the US dollar losing its traction on the back of the Fed's mixed stance on interest rate cuts. This was seen as a key factor that helped limit deeper losses for the Gold price.

    Weaker US Economic Data & Bearish US dollar Impact on Gold Prices

    On the US front, the broad-based US dollar has faild to stop its bearish rally and still flashing red due to weaker US retail sales and easing inflation data. This has increased market expectations for rate cuts by the Federal Reserve and contributed to the declines in the US dollar. Despite the Fed's more hawkish stance, indicating only one rate hike this year, investors are betting on two hikes in 2024. The softer economic data, including disappointing retail sales and declining inflation, suggest a slowing economy, strengthening the case for the Fed to lower borrowing costs sooner than anticipated.

    On the data front, the Commerce Department released figures showing a modest 0.1% increase in US Retail Sales for May, slightly lower than the anticipated 0.2% growth. This subdued report suggests consumer fatigue and a deceleration in economic momentum, further supporting expectations that the Federal Reserve could move to reduce interest rates earlier than previously forecasted.

    Therefore, the weaker US retail sales and easing inflation data are increasing expectations for Fed rate cuts, pressuring the US dollar and helping the Gold price to limit its deeper losses.

    Positive Market Sentiment & Its impact on Gold Prices

    On the other hand, the global market sentiment has been gaining momentum and remain positive as the S&P 500 opened higher around 5,487.03, hitting an intra-day high of 5,490.38. This is due to optimism fueled by strong performances in the technology sector, particularly with Nvidia surpassing Microsoft to become the world's most valuable company.

    Therefore, the positive global market sentiment driven by hopes for interest rate cuts and strong gains in the S&P 500 had a negative impact on the safe-haven appeal of Gold as risk-on sentiment typically reduce demand for safe-haven assets like Gold, causing its price to decline.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD (XAU/USD) - Technical Analysis

    Gold (XAU/USD) is trading at $2331.94, up 0.03%, as it navigates a range-bound environment. The 4-hour chart highlights a pivot point at $2342.00, crucial for assessing the next price movement. Immediate resistance is at $2339.37, followed by $2353.95 and $2369.24. These levels are critical for any bullish advance.

    On the downside, immediate support is found at $2308.16, with further support at $2297.24 and $2287.04. These levels are significant to prevent deeper declines. The Relative Strength Index (RSI) is at 59, indicating moderate momentum without overbought conditions, suggesting room for further movement.

    The 50-day Exponential Moving Average (EMA) at $2320.59 provides substantial support, reinforcing the current price level. The overall outlook for gold remains cautiously bullish above the $2342.00 pivot point.

    A break above this level could enhance bullish momentum, targeting the higher resistance levels. Conversely, a drop below immediate support at $2308.16 might trigger further selling pressure.

    The strategic entry point is set to buy above $2326, with a take profit target at $2342 and a stop loss at $2318. This setup aims to capitalize on potential upward movements while managing downside risks.

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    Daily Trade Ideas

    GOLD Price Analysis and Trade Forecast: Daily Trading Signal

    By LonghornFX Technical Analysis
    Jun 19, 2024
    Gold

    Daily Price Outlook

    - Gold (XAU/USD) is trading at $2331.94, up 0.03%, with a pivot point at $2342.00.

    - Immediate resistance at $2339.37, $2353.95, and $2369.24; support at $2308.16, $2297.24, and $2287.04.

    - RSI at 59 and 50-day EMA at $2320.59 suggest moderate momentum and solid support.

    Gold (XAU/USD) is trading at $2331.94, up 0.03%, as it navigates a range-bound environment. The 4-hour chart highlights a pivot point at $2342.00, crucial for assessing the next price movement. Immediate resistance is at $2339.37, followed by $2353.95 and $2369.24. These levels are critical for any bullish advance.

    On the downside, immediate support is found at $2308.16, with further support at $2297.24 and $2287.04. These levels are significant to prevent deeper declines. The Relative Strength Index (RSI) is at 59, indicating moderate momentum without overbought conditions, suggesting room for further movement.

    The 50-day Exponential Moving Average (EMA) at $2320.59 provides substantial support, reinforcing the current price level. The overall outlook for gold remains cautiously bullish above the $2342.00 pivot point.

    A break above this level could enhance bullish momentum, targeting the higher resistance levels. Conversely, a drop below immediate support at $2308.16 might trigger further selling pressure.

    The strategic entry point is set to buy above $2326, with a take profit target at $2342 and a stop loss at $2318. This setup aims to capitalize on potential upward movements while managing downside risks.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD (XAU/USD) - Trade Ideas

    Entry Price – Buy Above 2326

    Take Profit – 2342

    Stop Loss – 2318

    Risk to Reward – 1: 2

    Profit & Loss Per Standard Lot = +$1600/ -$800

    Profit & Loss Per Mini Lot = +$160/ -$80

    GOLD

    Technical Analysis

    GOLD Price Analysis – June 18, 2024

    By LonghornFX Technical Analysis
    Jun 18, 2024
    Gold

    Daily Price Outlook

    Gold price (XAU/USD) experienced some dip-buying during the European session on Tuesday, reversing part of the previous day's modest losses. The incoming US macroeconomic data indicated that inflationary pressures are subsiding, maintaining hopes for the first Federal Reserve (Fed) rate cut in September and providing some support to the non-yielding yellow metal.

    However, Gold remains confined within a week-long range below the 50-day Simple Moving Average (SMA), signaling caution for bullish traders.

    US Dollar and Treasury Yields Influence

    Last week, the Fed adopted a more hawkish stance, with policymakers favoring only one interest rate cut this year. This hawkish outlook supports elevated US Treasury bond yields, reviving demand for the US Dollar (USD) and limiting significant appreciation in Gold prices.

    Additionally, a generally positive risk sentiment might cap the demand for safe-haven assets like Gold. Strong follow-through buying is needed to confirm that the recent pullback from the all-time peak has concluded.

    Impact of US Dollar Dip-Buying

    On Tuesday, some US Dollar dip-buying emerged, acting as a headwind for Gold prices, though any meaningful slide remains elusive amid expectations of two Fed rate cuts in 2024.

    The Fed's projection of a single interest rate cut this year, compared to three in March, helped US bond yields recover part of last week's losses and allowed the USD to regain positive traction.

    Philadelphia Fed President Patrick Harker noted that maintaining rates longer will help reduce inflation, adding further pressure on the non-yielding yellow metal.

    Key Economic Data and Fed Speeches

    Data released on Friday showed that US import prices fell for the first time in five months in May, along with weaker US consumer and producer prices, indicating subsiding inflation. This keeps hopes alive for the first Fed rate cut in September, followed by another in December.

    Investors are now focused on Tuesday's US economic docket, which includes Retail Sales and Industrial Production data, for short-term trading opportunities during the early North American session.

    Additionally, speeches from influential Federal Open Market Committee (FOMC) members will play a crucial role in influencing USD demand, which, along with broader risk sentiment, should impact Gold prices.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD (XAU/USD) - Technical Analysis

    Gold (XAU/USD) is currently trading at $2,312.25, with bearish momentum observed on the 2-hour chart. The symmetrical triangle pattern forming suggests potential breakout volatility. The pivot point at $2,319.43 is crucial for determining the next move. Immediate resistance levels are seen at $2,325.03, $2,332.00, and $2,339.37. To confirm a bullish reversal, these resistance levels need to be breached. On the downside, immediate support is found at $2,309.55, with further support levels at $2,300.00 and $2,297.24. The Relative Strength Index (RSI) is at 40.71, indicating bearish sentiment but not yet in oversold territory.

    The 50-day Exponential Moving Average (EMA) at $2,319.43 is currently acting as a resistance level. The price needs to break above this EMA to signal a potential shift to bullish momentum. The 200-day EMA at $2,331.28 also serves as a significant resistance point that the price needs to surpass to confirm a stronger bullish trend. The current price action suggests that a break above the immediate resistance could signal a bullish move, while a drop below the pivot point of $2,319.43 may lead to further downside pressure. Monitoring these key levels and EMA crossovers will be essential for short-term trading strategies.

    The Fibonacci retracement levels further highlight key areas of interest. A break above the pivot point of $2,319.43 could indicate a bullish move, while a drop below $2,309.55 may suggest further downside pressure. Considering the current technical outlook, a sell position below $2,320 is advisable with a take profit target at $2,300 and a stop loss at $2,332.

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