Gold Rate Today: Gold price (Yellow Metal) remains pressured below $2,000, printing a three-day downtrend, even as the yellow metal buyers brace for the weekly gains due to its traditional safe-haven status. In doing so, the yellow metal ignores the recent recovery of the US Dollar.
Gold, also known as yellow metal, is currently facing pressure and has been on a three-day downtrend, despite the anticipation of weekly gains from buyers who view it as a traditional safe-haven asset. Interestingly, the recent recovery of the US Dollar has not affected yellow metal, despite positive inflation signals from the US economic calendar. This is due to fears that policymakers will be unable to agree on measures to address the expiration of the US debt ceiling, which is likely to occur in June. Another factor that has contributed to the stability of Gold price is the positive performance of equities, which is attributed to the strong results of technology companies.
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It is worth mentioning that the concerns expressed by the First Republic Bank (FRB) are also contributing to the rebound of Gold price, despite the US Dollar’s weak performance ahead of the release of the US Core PCE Price Index for March, which is the Federal Reserve’s preferred inflation gauge. The index is expected to ease to 4.5% YoY, compared to 4.6% in the previous period. In addition, the tension between the US and China, as well as recent harsh remarks by a Chinese diplomat regarding Taiwan’s status, are also factors that are influencing Gold price.
Gold traders will be looking to ease inflationary pressures in the US before the upcoming Federal Open Market Committee (FOMC) monetary policy meeting next week.
Spot Gold Trading Levels
Gold price is holding steady above the support confluence at $1,964, which includes Fibonacci 23.6% on a one-month chart and Pivot Point one-week S1.
In addition, yellow metal’s continued trading above the $1,980 support level, which includes Fibonacci 23.6% on a one-week and one-day chart, is providing buyers with hope.
However, there are several resistance levels that could limit the short-term upside of Gold price, including a cluster of obstacles around $1,990 and $1,993, which include the 5-day moving average and Fibonacci 61.8% on a one-day chart.
If Gold price manages to surpass those resistance levels, the next obstacle would be the psychological barrier at $2,000, which is also the Fibonacci 61.8% on a one-week chart. Buyers could face resistance at this level before being directed towards the monthly high of approximately $2,010, which also includes the Pivot Point one week R1.
It is important to note that Gold traders should keep an eye on some additional filters, such as the previous daily high around $2,005 and the previous weekly low near $1,970. These levels could also provide some resistance or support for the Gold price.
Gold Technical Analysis For Today
Gold Technical Analysis identifies and highlights price levels where various indicators, such as moving averages, Fibonacci levels, Pivot Points, etc. converge. This can be useful for short-term traders who are looking for entry points for counter-trend strategies and want to make small gains. For medium-to-long-term traders, the TCD can help identify price levels where a trend may stop or rest, which can be used to unwind positions or increase position sizes.
