GOLD prices stabilize after a strong sell-off

XAUUSD AND ANALYSIS
- Gold’s backdrop remains positive and may lead to further gains.
- Retail trader positioning is 50/50.

Gold reached a new record high last week but ended the week relatively unchanged after a sharp sell-off. The Federal Reserve hinted at a potential rate cut of 75 basis points this year, which initially boosted gold. However, the US dollar strengthened towards the end of the week, putting pressure on gold prices.

While the USD strengthened, US bond yields declined in expectation of a lower Fed Fund rate. The rate-sensitive US 2 year decreased by about 14 basis points, while the benchmark US 10 year dropped by 11 basis points last week. Although a temporarily stronger US dollar may limit gold's upward potential, lower US bond yields could potentially drive prices higher and retest last Thursday's all-time high.

After completing a bullish pennant pattern last week, the daily gold chart is now looking to build another bullish set-up. The current sideways price action may turn into a bullish flag pattern, and this would likely see gold pushback above $2,200/oz. and test the ATH at just under $2,225/oz. Reasonable first-line support seen a fraction under $2,150/oz.

Note the breakout zone 2166 - 2181

Resistance: 2181 - 2188 - 2195
Support: 2166 - 2157 - 2150 - 2145

Comment:

🌸Kremlin: The investigation into the shooting continues and the head of the investigation has reported to President Vladimir Putin.

🌸Spot gold increased 1.00% on the day, up nearly 10 USD in the short term and is currently trading at 2,193.61 USD/ounce.

🌸Negotiations on a ceasefire in Gaza and the release of hostages continued, with Mossad officials remaining in Doha.

🌸A Mossad team is returning to Israel from Doha to discuss the progress of the negotiations.

Gold is crazy today 🥹🥹🥹

Comment:

Comment:

Japan's MOF, FSA and BOJ hold an emergency meeting to discuss financial markets

The meeting just took place not long ago.

The market fluctuates too crazy 😈😈

Comment:

After falling below $2,190 under pressure from a rebound in the USD as Fed official Waller said the Fed was in no hurry to cut interest rates and could maintain current interest rates longer than expected, gold is now rebounding to above. $2,195. USD decreased slightly. DXY fell to 104.34

Comment:

The USD is rising slightly, with the DXY index up nearly 2% from its March low and up 3.3% year to date.

Comment:

🟢Fed's Powell: The fact that the United States is growing strongly, and the labor market is strong, gives us the opportunity to be more confident about inflation until interest rates are lowered.

Comment:

📌According to technical analysis, gold prices are still in an uptrend and may reach $2,300/oz. If economic data is negative, prices may face profit-taking pressure with support levels at $2,150-2,100-2,080/oz. Trading plan: sell at $2,300 and buy at $2,150.