The price of gold has remained low, having slipped below a short-term key support confluence, due to negative market sentiment and a stronger US dollar. The holiday in Europe, UK, and China has limited movement in the bullion market as the week begins. The recent run-up of the US dollar, supported by positive US inflation indicators, has also put pressure on the price of gold. Furthermore, the woes of the First Republic bank, hawkish Federal Reserve speculations, and disappointing China PMIs for April have contributed to the downside pressure on gold prices. Despite this, US Treasury bond yields remain flat and Wall Street has had a positive week, which has given gold buyers some hope as crucial data and events approach.
According to the Technical Confluence indicator, the gold price is currently below the $1,990 resistance confluence, which was previously a support level. This level includes Fibonacci 61.8% on one-week and one-month, as well as Fibonacci 38.2% on one-day. The 5-day moving average and Fibonacci 23.6% on one-day, which is near $1,993, also restrict short-term XAU/USD upside. Even if the gold price manages to cross the $1,993 hurdle, the previous daily high and Fibonacci 38.2% on one-week, near the $1,998 level, will need to be overcome before the psychological $2,000 mark can be challenged by XAU/USD buyers. On the other hand, minor supports near $1,980, including Pivot Point one-day S1, could provide some stability to the gold price. If these supports fail, the $1,970 level comprising the lower Bollinger band on one-day and Pivot Point one-day S2 will be the last line of defence for gold buyers.
Buy & trade from NFLMARKETS
For Registration & Consultancy
☎️ +971 4 880 5665
303 Al Serkal Building Dubai UAE
Marketing and content manager. Passionate about new technologies that make our everyday life easier, and people who create them.