Price Still Under Downward Pressure

• At the beginning of trading this week the rally in gold futures faded as the political turmoil in Russia ostensibly abated.
• The aborted rebellion over the weekend sent XAU/USD gold prices higher amid safe-haven demand.
• But the rally was short-lived, and the yellow metal is trying to hang on to tepid gains.
• Gold prices rose to the $1933 resistance level, before settling around $1926 an ounce at the time of writing.

According to the trades, XAU/USD gold prices are retracing a weekly loss of around 2%, but are still up around 6% since the beginning of the year. Silver prices have tried to hold on to their massive gains. Silver futures rose to $22.83 an ounce. The price of the white metal fell by 6% last week, which increased its decline since the beginning of the year 2023 to date by about 5.5%.

Over the weekend, Russian President Vladimir Putin witnessed a brief insurrection with the Wagner paramilitary group, with the leader calling for an uprising against the Kremlin. But a quick agreement with Belarus quickly ended the potential threat.

According to trading, the price of gold rose in the beginning in night trading and at the opening bell, but reports and profit-taking reduced the gains of the metal. Meanwhile, on the economic data front, the Dallas Fed’s manufacturing index remained in contraction for the 15th consecutive month, registering -23.2 in June. This was up slightly from -29.1 in May and above the consensus estimate of -26.5.

All eyes will be on the US durable goods orders data for May on Tuesday. The market expects a decline of 1%. In addition, the results of annual stress tests on US banks will be published on Wednesday. In general, gold prices found support on the weak dollar, as the US Dollar Index (DXY), which measures the performance of the US currency against a basket of other major currencies, fell to 102.71. The index has fallen by about 1% over the year.

A weak US dollar is good for dollar-denominated commodities because it makes it cheaper for foreign investors to buy them.

The US Treasury market was mostly lower across the board, with the 10-year yield down 2 basis points, to 3.719%. The one-month yield was flat at 5.11%, while the 30-year yield fell 0.5 basis points to 3.816%.

Relative to other metals markets, copper futures fell to $3.7845 a pound. Platinum futures rose to $929.90 an ounce. Palladium futures rose to $1,307.50 an ounce.

According to the performance on the daily chart below, the tendency of the XAU/USD gold price is towards the downside. The bears’ control over the trend will increase if the price of gold moves towards the support levels 1915 and 1885 dollars, respectively. From the last level and below it, you can think of returning to buy gold again.

On the other hand, the movement of the gold price towards the resistance level of $1970 an ounce will be important for the bulls to regain control over the direction of gold. Until now, I still prefer to buy gold from every downward level.

The price of gold today is on a date with the announcement of the US Durable Goods Orders numbers and the US Consumer Confidence reading. In addition to the increasing global geopolitical tensions or not.

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