#Gold Testing Support Near Term Bounce Expected

FX:XAUUSD   Gold Spot / U.S. Dollar
Gold             is testing lower levels of support as market participants aim to price in a potential rate hike in June by the Federal Reserve .

While intraday price action is oversold, the daily chart is indicating further selling could continue to below $1,230. If a close below this key level occurs, traders can expect XAUUSD             to reach $1,215.

Subscribers of MacroView's "Daily Grind" were alerted of the potential of a $30+ drop as seen here.

Key factors to watch:

  • The four-hour chart z-score is -2.4 (daily z-score is -2.57). This suggests that prices are stretched and a score +/- 2 makes a great contrarian indicator.
  • Intraday RSI and Stochastic are both suggesting oversold conditions.

MacroView expects to see demand between $1,215/20. It's important to keep and eye on the short end of the yield curve. With a relatively strong negative correlation with the two and five year yield maturity, if those continue to rise, we could see more pressure on the yellow metal.

For more information on MacroView's products, or general questions and comments, feel free to message us.

Also, readers are encouraged to post their thoughts and charts!

Gold is testing trend support on a combination of pretense of a fed rate hike, as well as the second yuan devaluation in two weeks by the PBOC. The devaluation in the yuan will de facto strengthen the dollar thus pressure commodities. However, technical gold is oversold near-term. A close beneath $1,200 would open up $1,190
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out