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Free AccessRecent Gains Are Considered Corrective
Gold is slightly softer in the Asia-Pac session, after closing up 0.2% on Tuesday during the Independence Day holiday in the US.
- In subdued trading, gold treaded water as traders directed their attention towards the upcoming US nonfarm payrolls report on Friday. This report is expected to provide new insights into the monetary policy direction of the Federal Reserve. Gold prices have experienced a decline of approximately 6% since reaching a peak in May 2023, influenced by the heightened hawkish rhetoric from the Fed.
- According to the MNI technicals team, trend conditions in gold remain bearish and the latest short-term gains are considered corrective. Fresh trend lows last week reinforce current bearish conditions, confirming a resumption of the downtrend and extending the price sequence of lower lows and lower highs. The focus is on $1885.8, the Mar 15 low. Key resistance is $1985.3, the May 24 high. Initial resistance is at $1933.9, the 20-day EMA.
- Elsewhere, holdings in gold-backed exchange-traded funds have fallen for 11 straight days, according to data compiled by Bloomberg. (See link)
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Why MNI
MNI is the leading provider
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