Today’s Gold Analysis Overview:
- Overall Gold Trend: Neutral with a tendency for an upward correction.
- Today's Gold Support Levels: $3240 – $3200 – $3170 per ounce.
- Today's Gold Resistance Levels: $3310 – $3355 – $3400 per ounce.
Today's gold trading signals update:
- Sell Gold from the $3330 resistance level with a target of $3100 and a stop-loss at $3370.
- Buy Gold from the $3230 support level with a target of $3340 and a stop-loss at $3190.
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Technical Analysis of Gold Price (XAU/USD) Today:
Gold bulls successfully approached the $3300 per ounce resistance again, recovering from losses that pushed it towards the $3121 per ounce support level, the lowest for the gold price index in over a month. Gold prices are currently stabilizing around $3310 per ounce at the time of writing. The failure of the bulls to rebound higher could confirm a head and shoulders formation, which might pave the way for technical profit-taking sales. What helped gold prices rebound higher was the return of tensions to global financial markets following Moody's sudden downgrade of the US government's credit rating late last week.
According to performance across stock trading platforms, Asian and European stock markets were mixed between stability and divergence during overnight trading. Also, US stock indices are showing weak movement. On another front affecting markets, Chinese monetary authorities cut key interest rates following some pessimistic economic data from the world’s second-largest economy. Furthermore, the Reserve Bank of Australia also cut its key interest rate on Tuesday.
This environment of concern will undoubtedly support the gold bullion market in achieving stronger gains, which has already happened.
Trading Tips:
Dear TradersUp follower, keep in mind that declines in gold prices might present opportunities for reconsidering purchases, but without taking risks and while monitoring market influencing factors.
The bullish scenario for gold prices is gaining momentum. According to gold analysts' expectations, the 14-day Relative Strength Index (RSI) has returned to stability above the 50 lines, which will support bulls in further advances. At the same time, the MACD lines are turning upwards. As I mentioned before, gold prices' stability above the $3,300 per ounce resistance will support technical buying of gold, thus preparing for stronger upward breakouts. The next resistance levels will be $3,330 and $3,385 per ounce, after which technical indicators will begin to give strong overbought signals.
Conversely, and according to the daily chart's performance, the bearish scenario for gold prices will strengthen if bears push the gold price index back to the vicinity of the $3160 per ounce support level. In general, the gold market will remain subject to the course of global geopolitical and trade tensions, the percentage of gold bullion purchases by global central banks, and the performance of the US dollar price.
From a technical perspective, expectations for June gold futures contracts are generally balanced in the near term, but their outlook is fading. The next upside target for bulls is to close the price above a strong resistance level at $3,350.00. The next downside target for bears in the near term is to push futures prices below the strong technical support level at the May low of $3,123.
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