XAUUSD : Gold breached the $2,300/ounce mark!
Updated
Gold prices lost the $2,300 mark last night as data from the US showed that labor costs are rising, thus pushing up inflationary pressure. As a result, the Fed will need to be more patient in lowering interest rates, as Fed Chairman Jerome Powell announced two weeks ago.
Gold price is trading at $2,292/ounce, up slightly by 0.27% after falling more than 2% on Tuesday, in the context of rising US government bond yields and a stronger USD. Data from the US Bureau of Labor Statistics (BLS) shows that the Labor Cost Index (ECI) skyrocketed in April. In addition, US consumer confidence also continued to decline, according to the monthly report. 4 by the American Conference Board (CB).
It is still too early to conclude that the uptrend has ended. Although a drop below the $2,300 mark could open the door to a deeper correction, at least as long as the price has not completely breached the April 23 low at $2,291. The downtrend will increase if the price loses this mark and will be even more negative if the EMA 50 at $2,240 is breached.
Currently, XAU/USD has broken through the EMA 20 and beyond is the rising trendline, which is also the lower boundary of the symmetrical triangle model. Not to mention, the RSI indicator is pointing down and fluctuating below 50. However, investors should not be too pessimistic. In case the price rebounds, the first resistance will be the 20 EMA at $2,215 and beyond that is the April 26 high at $2,252. The buyers will need to overcome these two barriers to consolidate their formation before considering the next increases.
Gold price is trading at $2,292/ounce, up slightly by 0.27% after falling more than 2% on Tuesday, in the context of rising US government bond yields and a stronger USD. Data from the US Bureau of Labor Statistics (BLS) shows that the Labor Cost Index (ECI) skyrocketed in April. In addition, US consumer confidence also continued to decline, according to the monthly report. 4 by the American Conference Board (CB).
It is still too early to conclude that the uptrend has ended. Although a drop below the $2,300 mark could open the door to a deeper correction, at least as long as the price has not completely breached the April 23 low at $2,291. The downtrend will increase if the price loses this mark and will be even more negative if the EMA 50 at $2,240 is breached.
Currently, XAU/USD has broken through the EMA 20 and beyond is the rising trendline, which is also the lower boundary of the symmetrical triangle model. Not to mention, the RSI indicator is pointing down and fluctuating below 50. However, investors should not be too pessimistic. In case the price rebounds, the first resistance will be the 20 EMA at $2,215 and beyond that is the April 26 high at $2,252. The buyers will need to overcome these two barriers to consolidate their formation before considering the next increases.
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✔️TP 2320
❌SL 2275
💵XAUUSD SELL 2300 - 2302 💵
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✔️TP 2380
❌SL 2310
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