Gold Technical Analysis
Ahmed Homayun Habib
Chief Markets strategist
We expect spot gold prices to rebound higher at the beginning of this week's trading amid ongoing tensions in Russia. Furthermore, gold prices began trading this week on an upward trajectory around the $3,306 resistance level and closed last week's trading around the $3,288 support level. According to performance across gold trading platforms, the gold price index fell by nearly 2 percent last week, as strong economic data undermined safe haven demand due to renewed trade war risks.
Chart by Trading View
Trading Factors:
We still recommend buying gold at any downward price level, constantly monitoring market factors, and avoiding risk, regardless of the strength of the trading opportunities.
On the economic front, new data showed that US personal income rose more than expected in April, while expenditures and prices increased in line with expectations. Overall, these results gave the Federal Reserve more room to maintain US interest rates for longer before resuming its monetary easing cycle, as policymakers indicated in various statements this week, which increased the opportunity cost of holding gold.
Meanwhile, US President Donald Trump indicated that China had violated the ongoing trade agreement with the United States, but he refrained from providing details. This increased expectations that the administration might attempt to re-escalate its trade war with the world's second-largest economy. This came shortly after the President succeeded in his appeal before a federal court, which lifted the ban on Trump's proposed reciprocal tariff package.
Today’s Gold Analysis Overview:
General trend for gold: Upward.
Today's gold support points: $3267 – $3200 – $3150 per ounce.
Today's gold resistance points: $3376 – $3400 – $3480 per ounce.
