#Gold Technical Analysis# On Tuesday (June 11), in early European trading, spot gold continued to be under pressure, with the current price near $2303/ounce. Dhwani Mehta, a senior analyst at FXStreet, wrote the latest article on Tuesday, analyzing and predicting the technical trend of gold prices.
Mehta wrote that gold prices hovered around $2300/ounce on Tuesday morning, and the trend remains fragile. Whether gold can hold the support level of $2277/ounce is vital.
Mehta said that from the daily chart, the technical aspect of gold is favorable to sellers, and the support level of $2277 / ounce seems to be at risk.
(Screenshot source: FXStreet)
Now all eyes are on the major events of Wednesday—the US Consumer Price Index (CPI) data and the Fed's policy statement, which will have a significant impact on the dollar and determine the next move for gold prices.
How will the price of gold trade next?
From the daily chart, it can be seen that the gold price continued to decline after breaking through the rising wedge and entered a consolidation phase.
Mehta pointed out that once the decisive breakthrough of the May 3 low point of $2277/ounce is made, the gold price is still susceptible to further downside risks.
The Relative Strength Index (RSI) on the 14th day is declining below 50, currently approaching 44, indicating that the gold price will further decline in the future.
Mehta said that the next support level for gold price is at the psychological level of $2250/ounce, and if it falls below this level, the gold price will inevitably test the 100-day moving average of $2217/ounce.
(Spot gold daily chart source: FXStreet)
On the upside, Mehta added that any recovery in gold price requires a breakthrough of the 50-day moving average of $2344 / ounce. After that, regaining the 21-day moving average of $2355/ounce will be the key to eliminating the recent bearish trend.
If gold continues to rebound, then gold buyers will focus on the May 24 high of $2364/ounce.
At 15:54 Beijing time, spot gold was reported at $2303.46/ounce.