Gold was still trading below last weeks highs with prices dropping on Friday after data showed the U.S. employed hired more workers than expected in May and maintained a fairly strong pace of wage increases.
Coming after the recent U.S. job report, market buyers remain cautious amid escalating fears of the FED's faster rate hike at June and July policy meetings, and Fridays jobs report raised that possibility even more.
Also, another tab to keep in mind is the anxiety-inducing European Central Bank (ECB) monetary policy meeting this week and the upcoming U.S. CPI data this Friday. Higher rates raise the opportunity cost of holding gold, which yields no interest. Also, risk-positive headlines from China keep the precious metal on the front foot for the upcoming week.
On the technical side, despite the recent positive MA and RSI signals, Gold remains on the seller‘s radar as the medal portrays a three-week-old rising bearish chart pattern. First, one of the things keeping the XAUUSD sellers hopeful is the metal trader’s inability to cross the convergence of the 50-p MA at $1860, as well as the stated wedges resistance line, around $1,873 by the press time.
It should be noted, however, that the metal sellers need validation from $1,840 to retake control. Following that, a southward trajectory towards $1830, and after the yearly low near $1,788, cant be ruled out.
On the other hand, if the positive trend continues, a successful break of the $1,873 hurdle should successfully cross Marchs low of $1,890, as well as the $1,900 threshold to please the bullion buyers.
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