Gold prices down
Gold prices have recently been trending lower, closing the week around 2 326 $ after hitting an intra-day low of 2 319 $. This decline is attributed to several factors, including high yields of US Treasury bonds and investor caution ahead of upcoming economic data releases.
Also read: Gold heading for a record price this summer?
Geopolitical tensions in the Middle East
Despite these pressures, geopolitical tensions in Middle East provided some support to gold, underscoring its traditional role as a safe haven in times of uncertainty.
Influence of US economic indicators and Fed comments
In the United States, gold prices initially rose to a four-day high of 2 339 $ after an inflation report indicated progress towards lower inflation, raising optimism about a possible interest rate cut in the Federal Reserve in 2024. However, prices then fell to 2 324 $a drop 0,12 %as traders reacted to the May PCE Price Index, in line with expectations and reflecting stable consumer confidence despite rising prices.
At the same time, the yields of US Treasury bonds have climbed to 4,339 %putting downward pressure on gold. TheUS dollar index remained stable around 105,80experiencing slight fluctuations during the session. Officials from the Federal Reserveincluding those in Richmond and San Francisco, expressed cautious views on inflation and economic growth, impacting market sentiment.
Geopolitical tensions in the Middle East: a potential brake on the fall in gold
Despite downward pressure on gold prices, escalating geopolitical tensions in the Middle East could limit further declines. Gold, known as a active refugegenerally attracts investments in times of geopolitical uncertainty.
Over the past 24 hours, the Gaza Ministry of Health reported the death of 40 Palestinians et 224 injured. Israeli forces targeted a water distribution point in Gaza City, resulting in the deaths of members of the al-Ghazi family, including a child.
UN spokesperson Stéphane Dujarric highlighted Israel’s ground offensive in Gaza City’s Shujayea neighborhood, displacing at least 60,000 residentswhile operations in the al-Mawasi area of southern Gaza have displaced 5,000 people and caused numerous casualties.
Since October 7, the conflict has been 37,834 dead et 86,858 injured in Gaza.
Daily Technical Analysis: Spot Gold / US Dollar (XAU/USD)
L’Or Spot related to American dollar (XAU/USD) closed the week at 2 326,72 $as observed on the 4-hour chart. Key price levels are essential for traders looking to make informed decisions.
The pivot point, marked by the green line, is located at 2 324,49 $providing a critical reference for potential price movements.
Resistance and support levels
Immediate resistance is identified at 2 332,00 $followed by the following resistance levels at 2 339,86 $ et 2 354,09 $. These levels are crucial for gauging upward momentum.
On the downside, immediate support is noted at 2 320,88 $with subsequent support levels at 2 310,26 $ et 2 297,61 $. These support levels will be key in identifying any potential downtrend.
The Relative Strength Index (RSI) is currently at 53,09, indicating neutral momentum, neither overbought nor oversold. There 50-day exponential moving average (EMA) is positioned at 2 324,49 $serving as a significant pivot point around the current price level.
In conclusion, it is recommended to consider buying positions above the level of 2 320 $considering the immediate support and resistance levels. A downtrend can be anticipated if the price falls below this level. Continuous monitoring of the RSI and the 50-day EMA is essential to identify potential trend changes and make informed trading decisions.
