- Summary:
- Gold price trades higher close to daily top and getting back to daily highs at 1,738 which is the upper bound of the recent consolidation trading range.
Gold price trades higher close to the daily top and getting back to daily highs at 1,738, which is the upper bound of the recent consolidation trading range. Higher gold prices today supported by a falling USD.
The U.S. greenback is under pressure across the board today amid a slight improvement in investors sentiment. China plans to accelerate the purchases of U.S. Agri products as per the agreement in phase one deal reached back in January. Until April 2020, China’s agriculture imports from the U.S. have reached almost 13% of the goal. The news also pushed the U.S. and European equities higher, but gold continues to keep the gains.
Worries of a new wave of COVID-19 infections also helps the precious metal. Yesterday, The U.S. Philadelphia Fed Manufacturing Survey came in at 27.5, beating the expectations of -23 in June and recovering from -43.1 in May. The current new orders index increased 42 points to 16.7, while the shipments index rose 56 points to 25.3.
The Jobless claims totalled 1.5 million the previous week, above the consensus expectations of 1.3 million. The weekly jobless claims stayed above 1 million for the 13th consecutive week as the coronavirus crisis continues to hit the U.S. economy. Better economic data support the case for a fast recovery.
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Gold Price Technical Analysis
Gold price is 0.74% higher at 1,734 testing the highs of the recent consolidation range. Bulls need a break higher to initiate another leg higher. Yesterday the price tested the 50-day moving average which has proved a secure support area during June. The long term picture remains bullish as long as the gold price holds above the 50-day moving average.
On the upside, immediate resistance stands at 1,737 the daily high (also yesterday’s high). If the gold price breaks above 1,737, then the next resistance would be met at 1,745 the top form June 11th. Next hurdle stands at 1,765 the high from May 18th.
On the contrary, the initial support for gold stands at 1,721 the daily low (lower low), while more buying interest might emerge at 1,715 the 50-day moving average. In case the sellers continue the pressure, then the next support area stands at 1,692 the low from June 9th.