Gold Price Forecast & Current trend: Gold prices have declined for the second session in a row, retreating from record highs since the beginning of the year and testing 1900.00 for a breakdown.
Investors are fixing long positions in the instrument amid the publication of upbeat macroeconomic statistics from the US, as well as ahead of the release of the US labor market report for May on Friday. Additional pressure on the quotes was exerted by the yield of US Treasury bonds, which resumed growth. In turn, gold is still in high demand against the background of existing inflationary risks, which are almost completely ignored by the US Fed.
Today, investors expect the publication of the monthly economic review, Fed’s Beige Book, which is likely to be able to further support the “bullish” sentiment in USD.
Gold Price Forecast Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is narrowing actively, reflecting the emergence of ambiguous dynamics of trading in the short/ultra-short term. MACD reversed downwards having formed a new sell signal (located below the signal line). Stochastic is showing similar dynamics, retreating from its highs, indicating the overbought gold in the ultra-short term.
The development of a full-fledged downtrend is possible in the near future.
Resistance levels: 1916.36, 1935.00, 1952.53, 1966.25.
Support levels: 1900.00, 1882.10, 1863.34, 1850.00.
Gold Price Forecast And Trading tips
To open new short positions, one can rely on the breakdown of 1882.10. Take-profit – 1850.00. Stop-loss – 1900.00. Implementation time: 1-2 days.
A rebound from 1882.10 as from support followed by a breakout of 1900.00 may become a signal for new purchases with the target at 1935.00. Stop-loss – 1882.10.