Technical Analysis

GOLD Price Analysis – June 17, 2024

By LonghornFX Technical Analysis
Jun 17, 20242 min

Daily Price Outlook

Gold prices surged on Friday, reaching $2,333 per ounce, as easing US inflation fueled hopes of Federal Reserve rate cuts later this year. This positive sentiment, coupled with risk aversion stemming from European political uncertainty, boosted the appeal of the safe-haven asset.

US Economic Data and Fed Outlook:

US consumer sentiment declined in June, but inflation expectations remain above the Fed's 2% target. Despite this, markets are pricing in 39 basis points of easing by December, suggesting that the Fed may cut rates more than once.

Dollar Index and Geopolitical Factors:

The US Dollar Index (DXY) rose to 105.53, capping gold's gains. However, geopolitical factors, such as China's pause on its bullion buying spree, could impact gold's future trajectory.

Upcoming Events:

Investors will closely watch upcoming G7 meetings and the Empire State Manufacturing Index on Monday for further clues on the economic outlook and potential impact on gold prices.

GOLD Price Chart - Source: Tradingview
GOLD Price Chart - Source: Tradingview

GOLD (XAU/USD) - Technical Analysis

Gold prices have rebounded from recent lows, surging above the $2,330 mark on Monday. The 4-hour chart reveals a bullish momentum, with the precious metal trading above its pivot point at $2,342.00.

The Relative Strength Index (RSI) reading of 56 indicates a strengthening positive sentiment in the market. Moreover, the 50-day Exponential Moving Average (EMA) provides near-term support at $2,326.93, further bolstering the bullish outlook.

Traders should watch key resistance levels at $2,342.55, $2,357.84, and $2,370.11. A decisive break above these levels could trigger further buying interest and propel gold towards higher targets.

However, should the upward momentum wane, immediate support lies at $2,308.16, followed by $2,295.93 and $2,287.04. A break below these levels might signal a temporary setback for the bullish trend.

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