#Gold Technical Analysis# 24K99 News On Friday (June 21), spot gold maintained its rebound trend during the Asian market session and is currently around $2363/ounce. On this trading day, investors will focus on US PMI data, which is expected to trigger market trends. FXStreet analyst Haresh Menghani's latest article on Friday analyzed gold price trends.
Menghani wrote that the price of gold remained in a range during the Asian trading session on Friday and consolidated the strong momentum of the previous day. The bet on a rate cut by the Federal Reserve in September continued to support gold.
Menghani pointed out that from a technical point of view, as of Thursday, the price of gold has continued to break through the 50-day simple moving average (SMA), which is conducive to call traders and suggests that the path of least resistance for gold resistance is upward. Therefore, any corrective decline may be viewed as a buying opportunity and is more likely to be limited.
Spot gold closed up $31.74, or 1.36%, at $2359.93/ounce on Thursday.
looking ahead to this trading day, gold traders will closely monitor the US June manufacturing and service purchasing managers' indexes (PMI) initial values. Analysts pointed out that weak PMI data may increase hopes of a rate cut by the Federal Reserve and support gold prices.
At 21:45 on Friday Beijing time, the initial Markit manufacturing PMI and service PMI for June in the United States will be released, with expected values of 51.0 and 53.7, respectively.
What will happen to gold after a big rise?
Menghani said that from a technical point of view, the price of gold closing above the 50-day moving average on Thursday may be regarded as a new trigger by call traders. In addition, oscillation indicators on the daily chart begin to gain positive traction again, supporting the prospect of further upward movement in gold prices.
Menghani said that therefore, the price of gold seems likely to test the next obstacle (around $2378-2380/ounce). The ultimate goal of gold prices may be to reclaim the integer level of $2400/ounce.
On the downside, Menghani pointed out that the 50-day moving average (currently around $2344-2345/ounce) seems to limit the short-term downside space for gold prices, with the next support in the $2335-2336/ounce area.
Menghani said that if the price of gold convincingly falls below the above-mentioned area, gold prices may target the integer level of $2300/ounce and the support level of $2285/ounce.
Some subsequent sales will lay the foundation for further downward correction of gold prices and drag gold prices down to the $2253-2254/ounce area.
At 13:04 Beijing time, spot gold reported $2363.15/ounce.