GOLD Analysis – Gold Still Holds Back From Falling, The USD Situation Is Decisive


Pressure on gold trade eased slightly as the US dollar weakened as it resumed trading at the opening earlier this week.

The latest data shows a risk to the United States (US) economy with a drop in the first quarter economic growth data as well as the PCE price index last week.

On Monday yesterday, the PMI data from the ISM survey also recorded a contraction for the May report as well as adding pressure to the US dollar and raising the price of gold again.

On the XAU/USD chart which measures the value of gold against the US dollar, the price hovering at a low level around 2315.00 yesterday has jumped again in the New York session reaching the level of 2350.00.

The price increase was also seen crossing the Moving Average 50 (MA50) line on the 1-hour time frame on the chart and the price hovered above it during today's trade (Tuesday).

If the price increase continues above yesterday's level, the price is expected to test the 2370.00 zone which was the focus before.

If the price continues its ascent, the 2340.00 level is likely to be the target.

On the other hand, if the price is pressed to fall back below the MA50 line, it will again signal a bearish movement for gold again.

The support level that will be tested is at 2300.00 in the event of a lower decline.