Gold Recovers Shine After Finding Support at $2,000
Gold recovered shine on Monday after being rejected from the $2,070 area last week as the cautious mood underpinned the yellow metal at the beginning of the week despite the increase in US bond yields.
The spot price, XAU/USD, is currently trading at the $2,020 zone, 0.25% above its opening price after the rejection from near-record highs was contained by the $2,000 psychological area.
Better-than-anticipated nonfarm payrolls report boosted the dollar on Friday, sending the XAU/USD pair briefly below the $2,000 level. The US economy created 253,000 jobs in April, above the 179,000 expected, while the unemployment rate edged lower to 3.4%.
Despite the resilience of the US labor market, markets continue to anticipate the Federal Reserve will remain put when the board meets on June 13-14. The CME FedWatch Tool points to an 88% probability of no change versus 12% of a 25 basis points rate increase. For the July meeting, markets anticipate a 25 bps rate cut with a probability of around 30%.
These expectations have kept the greenback on the defensive, favoring the appreciation of the precious metal, which continues to trade within striking distance of its record highs in the $2,070-75 area.
From a technical perspective, XAU/USD maintains a short-term bullish outlook according to indicators on the daily chart, although their flat slopes point to a lack of momentum at the time being. At the same time, the price remains above its main moving averages, favoring the positive perspective, targeting record highs.
On the other hand, the immediate support level is given by the $2,000 area, followed by the $1,975 zone. If lost, the correction could deepen, with $1,930 and $1,910 as the following supports.
The spot price, XAU/USD, is currently trading at the $2,020 zone, 0.25% above its opening price after the rejection from near-record highs was contained by the $2,000 psychological area.
Better-than-anticipated nonfarm payrolls report boosted the dollar on Friday, sending the XAU/USD pair briefly below the $2,000 level. The US economy created 253,000 jobs in April, above the 179,000 expected, while the unemployment rate edged lower to 3.4%.
Despite the resilience of the US labor market, markets continue to anticipate the Federal Reserve will remain put when the board meets on June 13-14. The CME FedWatch Tool points to an 88% probability of no change versus 12% of a 25 basis points rate increase. For the July meeting, markets anticipate a 25 bps rate cut with a probability of around 30%.
These expectations have kept the greenback on the defensive, favoring the appreciation of the precious metal, which continues to trade within striking distance of its record highs in the $2,070-75 area.
From a technical perspective, XAU/USD maintains a short-term bullish outlook according to indicators on the daily chart, although their flat slopes point to a lack of momentum at the time being. At the same time, the price remains above its main moving averages, favoring the positive perspective, targeting record highs.
On the other hand, the immediate support level is given by the $2,000 area, followed by the $1,975 zone. If lost, the correction could deepen, with $1,930 and $1,910 as the following supports.