Beyond $2,025 a gold retreat appears elusive.
After briefly touching the highest level in history at $2,080, the price of gold (XAU/USD) again pares back its gains and trades below that mark. In preparation for the crucial ECB monetary policy meeting early on Thursday and in anticipation of Friday’s US NFP, bulls take a break.
The price of gold (XAU/USD) declines after briefly reaching its highest level ever as bulls take a break before the important European Central Bank (ECB) monetary policy meeting on early Thursday and the US Nonfarm Payrolls (NFP) report on Friday.
However, despite announcing a 0.25% rate hike, the Federal Reserve’s (Fed) indirect efforts to quell the hawks appear to be the main driver of the gold price increase. On the same track as the rate rise concerns might be the US Dollar’s downward trend on worries that banking problems and the impending debt ceiling expiration may delay rate hike worries, particularly considering the policymakers’ omission to express the need for additional rate hikes. The International Monetary Fund’s (IMF) confidence for Asia, the largest buyer of XAU/USD, also supports an increase in the price of gold.
On the other hand, after the XAU/USD pair updated the all-time high with the $2,080 figure, it appeared as though purchasers were being spurred by China’s weaker PMIs and potential obstacles to the ECB raising interest rates, which can boost the US Dollar.
Moving on, the ECB’s decision will be based on recent crucial statistics from the bloc and a challenge to the significant rate hikes from the Bank Lending Survey (BLS). The US jobs report for April’s monthly prints will be crucial to keep an eye on after that to get clear guidance.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Gold is currently trading in up channel.
Gold is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Gold resistance is at 2042.47 & its immediate support level is 2030.98
HOW TO TRADE GOLD
Gold is currently trading higher; it has broken through its previous day high and is currently trading near a key resistance level. If gold can break through this resistance and holds its price above it, further gains are possible.