Predict gold prices
- gold prices land restoration U.S. dollar Weak after a poor performance on Monday
- XAU/American dollar The bounce after encountering technical support at the lower boundary of the ascending channel
- This article discusses the key technical levels to watch in the near term
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After underperforming at the start of the week, gold prices (XAU/USD) rebounded on Tuesday, supported by dovish sentiment and, more importantly, the weakness of the US dollar, a situation that increases demand for the precious metal by making it more affordable. for international buyers.
While daily fluctuations can be difficult to predict, gold maintains its bullish profile in the medium term, despite its already noticeable rally in 2023. For context, XAU/USD is up more than 10% this year, breaking one technical resistance after another and flirting to regain an all-time high.
Looking ahead, the fact that the Fed is ending its tightening campaign imminently should be seen as a positive stimulus for bullion. Normally, after the Fed delivers its latest hike of the cycle and pauses, prices begin to fall along the Treasury curve. This may be in favor of non-yielding assets.
Other potential tailwinds are The deteriorating health of the US economy. Despite the resilience of the activity, the outlook remains difficult and surrounded by an exceptional degree of uncertainty, especially after the banking sector turmoil last month.
If credit conditions worsen significantly as summer approaches in response to the fallout from regional bank failures, the country could be on the road to recession. The environment can stagnate Support the demand for safe haven assetswhich increased the price of gold.
From a technical perspective, XAU/USD encountered support at the lower end of the ascending channel near the $2000 level on Monday, and managed to make a recovery from that area. If gains accelerate in the coming days, the initial resistance is at $2,060, followed by $2,075, the all-time high.
On the other hand, the sellers have re-emerged and pushed the price lower, and the first technical floor to consider is around the psychological $2000 level. If this support is breached, we may see a decline towards $1,975. On further weakness, the focus moves to $1,940.
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change in |
Longs |
Shorts |
Hey |
| Daily | 1% | 6% | 3% |
| weekly | -5% | -3% | -4% |