Gold Price Update – Grinding Into Multi-Week Support

[MongiIG]

GOLD PRICE (XAU/USD), CHART, AND ANALYSIS

• Gold nears multi-week support.
• No new drivers seen for gold’s move.

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An interesting move in gold this morning with the precious metal on the cusp of testing short-term support. The precious metal fell on Monday after the release of weaker-than-expected U.S. CB consumer confidence data and there is little fresh news so far today to stem or fuel the next move. In the US Treasury market, yields are marginally lower – normally a gold supportive scenario – with the benchmark UST 10-year trading with a yield of 3.14%, down from 3.24% on Monday. US Treasury yields will continue to steer gold and with that in mind, US Fed chair Jerome Powell takes part in a panel discussion at the ECB Forum later today, alongside ECB President Christine Lagarde, BoE governor Andrew Bailey, and the Bank for International Settlements general manager Agustin Carstens. Any further clarity from the Fed chair may give gold a fresh stimulus.

Looking at the daily chart, gold remains biased to the downside. The short-term series of lower highs remain in place, while a near-complete series of lower lows add weight to lower prices. The precious metal remains below all three simple moving averages, while the 50-/200-day sma cross over – ‘death cross’ – adds to the chart’s gloomy outlook. The first level of support is seen at $1,805/oz. before $1,786/oz. comes into play.

A Comprehensive Guide to Moving Averages

GOLD DAILY PRICE CHART – JUNE 29, 2022

What are your views on Gold – bullish or bearish?

 

 

Jun 29, 2022 | DailyFX
Nick Cawley, Strategist