#Gold Technical Analysis# 24K99 News: In the early morning of Friday's European market, spot gold rose sharply in the short term and the price of gold is approaching the $2320/ounce mark, rising more than $15 intraday. Dhwani Mehta, a senior analyst at FXStreet, has written a new article analyzing and predicting the technical trend of gold price.

(Source: 24K99) 15-minute chart for spot gold.

Mehta states that the current market focus is on the preliminary data for the University of Michigan Consumer Confidence Index and inflation expectations, which will be released later on Friday, in order to seek new clues to the Fed's policy outlook and its impact on the dollar, ultimately affecting the gold price trend.

At 22:00 Beijing Time on Friday, the initial value of the University of Michigan Consumer Confidence Index for June will be released, with an expected value of 72.0. Investors will also pay attention to inflation-related data. The preliminary value of the University of Michigan's 1-year inflation expectations for June in the United States is expected to be 3.2%, with a previous value of 3.3%; the preliminary value of the University of Michigan's 5-10 year inflation expectations for June in the United States is expected to be 3.00%, unchanged from the previous value.

Mehta also pointed out that speeches by Fed policy decision makers will be closely followed by market participants. In addition, capital flows over the weekend may continue to play a role and affect the gold price trend.

At 02:00 Beijing Time on Saturday, Charles Evans, the president of the Chicago Federal Reserve, will participate in a fireside chat.

The Latest Technical Analysis of Gold

Mehta said that the short-term technical outlook for gold remains roughly unchanged, as the price of gold continues to fluctuate in a narrow range, and the upward space is limited by the convergence of the 21-day moving average line and the 50-day moving average line (near $2350/ounce). On the other hand, the downside seems to be protected by the low point of $2277/ounce on May 3.

Nevertheless, as the relative strength index (RSI) on the 14th is still far below 50, currently approaching 45.00, there is still downside risk for the gold price.

In addition, the potential for a bearish crossover also gives gold sellers hope. The 21-day moving average is currently at the edge of crossing below the 50-day moving average from above, and if this happens, it will confirm the bearish crossover.

Mehta pointed out that the short-term support level for the gold price is currently at $2300/ounce, and once it falls below this level, the low point on June 10th of $2287/ounce will become the support. If the gold price continues to fall below the latter level, the seller's target will be the psychological barrier of $2250/ounce, after which it will retest the low point of $2277/ounce on May 3.

(Spot gold daily chart source: FXStreet)

On the other hand, Mehta added that any recovery of the gold price would require a breakthrough in the key area near $2350/ounce, where the 21-day and 50-day moving averages are approaching convergence.

Once this resistance is broken, gold buyers will then look to the high point of $2364/ounce on May 24th, followed by the high point of $2388/ounce on June 7th.

At 16:06 Beijing Time, spot gold was reported at $2319.05/ounce.