#Gold Technical Analysis# 24K99 News On Tuesday (June 25th), spot gold maintained a daily decline trend during the early European market. At present, the gold price is near 2324 US dollars/ounce, and it fell more than 10 US dollars during the day. FXStreet senior analyst Dhwani Mehta's latest article on Tuesday analyzed and predicted the technical trend of the gold price. Mehta pointed out that the gold price is partially reversing Monday's rebound. The minimum resistance path of the gold price still seems to be downward. From the daily chart of gold, the relative strength index (RSI) remains below 50, and everyone's attention is focused on the speeches of Federal Reserve officials and US economic data.
Mehta pointed out that the gold price is partially reversing Monday's rebound. The minimum resistance path of the gold price still seems to be downward. From the daily chart of gold, the relative strength index (RSI) remains below 50, and everyone's attention is focused on the speeches of Federal Reserve officials and US economic data.
If Federal Reserve officials express hawkish remarks, the US dollar is expected to strengthen, thereby triggering greater selling of gold.
Boosted by the US dollar's rebound, gold prices rose on Monday. Spot gold rose $12.49, or 0.54%, to close at $2334.13/ounce on Monday.
At 22:00 on Tuesday Beijing time, the US June Conference Board Consumer Confidence Index will be released, which is expected to be 100.0, and was 102.0 in May.
At 19:00 on Tuesday Beijing time, Federal Reserve director Bowman will deliver a speech on monetary policy and bank capital reform.
At 00:00 on Wednesday Beijing time, Federal Reserve director Cooke will deliver a speech at the Economic Club of New York.
At 02:10 on Wednesday Beijing time, Federal Reserve Director Bowman will deliver a keynote speech at a network seminar hosted by Federal Reserve Banks of St. Louis, Chicago and Kansas City.
On May 17th local time, Federal Reserve director Bowman said she expects US inflation to remain high, and reiterated the possibility of raising interest rates if necessary.
Due to Bowman's recent series of tough remarks, she is considered the most "hawkish" member among current Fed policy makers (board of directors + regional Fed presidents). In addition, as a director, she has voting rights at every FOMC interest rate meeting.
Mehta wrote that investors are now looking forward to the comments of Federal Reserve officials who will speak later on Tuesday, including directors Cooke and Bowman. In addition, US Conference Board Consumer Confidence data will also attract the attention of gold traders. At the same time, capital flows in the first half of the year may continue to play a major role in influencing the trend of gold prices.
The Latest Technical Analysis of Gold
Mehta pointed out that the gold price continues to hold the confirmed symmetrical triangle pattern last week, and the gold price rebounded from the triangle support level (then at 2317 US dollars/ounce) on Monday.
However, due to the relative strength index (RSI) below 50 on the 14th, the sellers have returned to retest the level.
In addition, the bearish cross of the 21-day moving average (SMA) and the 50-day SMA continue to exert bearish pressure on the gold price.
Mehta said that if the gold price's closing price is lower than the triangle support line (currently at 2320 US dollars/ounce), it will confirm the failure of this pattern, thereby increasing selling interest.
If the gold sellers take action, the first support demand area for the gold price will be located at the level of 2310 US dollars/ounce. The next support level will be at 2300 US dollars/ounce. Once the above barriers are breached, the low point of May 3, 2277 US dollars/ounce, will once again become the focus of attention.
(Spot gold daily chart source: FXStreet)
On the other hand, Mehta added that the gold price needs to reclaim the area near 2335 US dollars/ounce, where the 21-day moving average and the 50-day moving average converge.
If the gold further rises, the two-week high of 2366 US dollars/ounce will be challenged, and after that, the buyer's target will be the high point of June 7, 2388 US dollars/ounce.
At 15:57 Beijing time, spot gold was reported at 2323.23 US dollars/ounce.