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Gold Analysis: Upward Trend Gains Strength

By Mahmoud Abdallah

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of tra...

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Today’s Gold Analysis Overview:

  • The overall Gold Trend: Strongly bullish.
  • Today's Gold Support Levels: $3340 – $3300 – $3240 per ounce.
  • Today's Gold Resistance Levels: $3390 – $3440 – $3500 per ounce.

Gold Analysis Today 05/06: Upward Trend Strong (Chart)

Today's gold trading signals update:

  • Sell Gold from the $3430 resistance level with a target of $3280 and a stop-loss of $3480.
  • Buy Gold from the $3310 support level with a target of $3470 and a stop-loss of $3260.

Technical Analysis of Gold Price (XAU/USD) Today:

Gold prices continue a strong upward rebound, coinciding with increasing economic concerns as summer approaches, following US President Trump's statements that sparked new economic worries. Recently, Trump posted on his "Truth Social" account that Chinese President Xi Jinping is "very difficult to make a deal with," and also called on Federal Reserve Chairman Jerome Powell to cut US interest rates. According to gold trading platforms, the gold price index jumped to the $3383 per ounce resistance level, placing it closer to breaking the historical psychological $3400 per ounce resistance once again. Gold's price is currently around $3370 per ounce at the time of writing.

Based on bullion performance, front-month gold futures settled up 0.7% at $3,383.50 per ounce, marking the second session out of three in which gold closed higher.

Trading Tips:

We still advise buying gold on dips while not taking excessive risks and continually monitoring market influencing factors to ensure excellent trading opportunities.

Technical levels for gold prices today:

There is no change in my technical view, and according to gold analysts' forecasts, the overall trend for the gold index remains upward. The chance of surpassing the psychological $3400 per ounce resistance is strong. Technical indicators still point upwards; the 14-day Relative Strength Index (RSI) is halfway between the 50-line and the overbought line, ensuring bulls maintain control of the trend in the coming days. At the same time, the MACD indicator lines continue to point upwards. Bulls still have strong opportunities to push gold prices higher as long as global trade and geopolitical tensions persist, and as long as global central bank purchases of gold bullion continue to increase, coupled with ongoing pressure on the US dollar due to investor reactions to US President Trump's policies.

Gold Market Strengthens Ahead of US Jobs Data

The gold bullion market's gains increased amid a decline in the US dollar following a report that showed a sharp drop in US private sector employment last month. According to economic calendar data, the ADP employment report showed that the US private sector added only 37,000 new jobs in May, the lowest number since March 2003, significantly below the 60,000 jobs added in April, and well below the forecast of a 110,000 job increase. In the same vein, the Bureau of Labor Statistics will release the broader US employment report tomorrow, Friday, with forecasts expecting employers to add a total of 125,000 jobs in May, down from 177,000 jobs in the previous month.

On another note, the US Institute for Supply Management (ISM) Services PMI showed the sector contracted in May for the first time in nearly a year, affected by a sharp decline in new business and a rise in input costs, likely linked to the new tariffs imposed by the Trump administration.

According to currency market trading, the US dollar fell after the release of the ADP employment report, with the US Dollar Index decreasing by 0.48 points to 98.75. US Treasury yields also fell sharply, with the yield on the two-year US Treasury note at 3.879%, a drop of 8.4 basis points, while the ten-year Treasury yield fell by 10.9 points to 4.361%.

Ready to trade our Gold daily analysis and predictions? We’ve made a list of the best Gold trading platforms worth trading with.

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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