[ad_1]
- The recent recovery of the US dollar stopped the course of the rise of the XAU/USD gold price. This affected the resistance level of $2063 an ounce.
- As a result, the price of gold was subjected to profit-taking sales that affected the support level of $2000 an ounce.
- This is before prices settled around the $2018 level at the time of writing the analysis.
- Despite the recent performance, the XAU/USD gold price is still on an upward path as long as it is stable around and above the psychological resistance of $2000 an ounce.
On the economic side, the price of gold is trading affected by the results of recent economic data, as the Michigan Preliminary US Consumer Confidence Index for May missed the expected reading of 63 with a reading of 57.7. The import price index for April beat both expectations (MoM) and (YoY) at 0.3% and -6.3% respectively with a change of 0.4% and -4.8%.
The export price index outperformed on an (annual) basis and matched (monthly) expectations. Prior to that, it was announced that last week’s Initial Jobless Claims exceeded the expected number of claims at 245 thousand with a record above 264 thousand, while continuing claims exceeded expectations at 1.82 million with a tally of 1.813 million.
The US PPI excluding food and energy for April missed the expected change (on a yearly basis) of 3.3% with a change of 3.2%. The equivalent (monthly) was in line with the estimate of 0.4%. The general PPI missed both (monthly) and (yearly) forecasts. Earlier in the week, the CPI excluding food and energy matched both (MoM) and (YoY) expectations at 0.4% and 5.5%, respectively.
In the near term and according to the performance of the hourly chart, it appears that the XAU/USD gold price is trading within a bearish channel formation. This indicates a significant short-term bearish bias in market sentiment. Therefore, the bears will look to extend the current declines towards $1998 or lower to $1980 an ounce. On the other hand, the bulls will target short-term profits at around $2028 or higher at $2045 an ounce.
On the long term, and according to the performance on the daily chart, it appears that the XAU/USD gold price is trading within a bullish channel formation. This indicates a significant long-term bullish bias in market sentiment. Therefore, the bulls will target the long-term profit at around $2066 or higher at $2120 an ounce. On the other hand, bears will look to pounce on gains at around $1,949 or lower at $1,895 an ounce.
Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.
[ad_2]