On Wednesday (June 5), spot gold maintained its intraday rebound trend, and the price of gold is currently around US$2,339 per ounce.
Gold prices remained strong despite the dollar’s continued rise. Analysts said tensions in the Middle East provided momentum for gold’s rebound.
Gold prices rebounded ahead of key U.S. data after testing a three-week low of $2,315 an ounce a day earlier.
The question is whether the rally will last.
The question is whether the rally will last.
Spot gold closed down $23.61, or 1%, at $2,326.66 an ounce on Tuesday. The lowest price of gold fell to $2,315.56 an ounce during the session.
Investors’ attention is now turning to top-level data (U.S. ISM Services PMI data) for new clues on the Fed’s interest rate outlook, which could have a significant impact on gold prices.
The U.S. ISM non-manufacturing purchasing managers’ index (PMI) for May will be released at 22:00 Hong Kong time on Wednesday, and is expected to be 50.8.
If the U.S. ISM services PMI data released later on Wednesday disappoints the market, rekindled dovish Fed expectations could continue to weaken the dollar and revive bullish sentiment around gold prices.
Gold price technical trend analysis
Looking at the daily chart, gold prices closed below the key 50-day simple moving average (then at $2,335/oz) on Tuesday, thus breaking out of the range.
The 14-day relative strength index (RSI) has moved back into negative territory below 50, justifying a downside breakout.
On the downside, gold sellers need to keep prices below the three-week low of $2,315 an ounce to extend the downtrend toward the $2,300 an ounce level.
Looking further down, gold prices could fall towards the May 3 low of $2,277 an ounce.
On the upside, gold prices need to break through the 50-day moving average resistance level (currently at $2,337/oz) to further challenge the 21-day moving average at $2,358/oz.
If gold prices break through the above moving average resistance, gold buyers may push towards the May 24 high of $2,364/ounce. Once this level is conquered, gold prices are expected to move towards the lower edge of the wedge at $2,400/ounce.
Author: Zhou Tong (Analyst) 05-06-2024
At 20:50 Hong Kong time, spot gold was quoted at US$2,340.06 per ounce.
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
Hongfeng Gold Industry reminds you: Strategic suggestions are for reference only. There are risks in entering the market and you should invest with caution.