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Gold Price Forecast: XAU/USD Hovers around $1,960 Amid Mixed Responses to Fed June Policy

  • The gold price is juggling a tight range as the investment community is divided over June’s monetary policy.
  • US banks seem reluctant to distribute credit to households and businesses to maintain their asset quality.
  • Gold price is consolidating around the 50% Fibonacci retracement at $1,960.

The price of Gold (XAU/USD) it is being auctioned inside the forest around $1,960 at the beginning of the European session. The precious metal is showing a back and forth action as the investment community is divided on the Federal Reserve (Fed) interest rate decision to be made at the June policy meeting.

S&P 500 futures have returned nominal added gains in Asia, portraying a decline in market participants’ risk appetite. The Dollar Index (DXY) has seen its bearish momentum intervene after falling to near 103.80. It looks solid for the Dollar Index to continue falling as US economic activities are generally contracting due to the Fed’s aggressive tightening and the addition of more filters in the credit disbursement procedure used by the regional banks in the United States.

US banks seem reluctant to distribute credit to households and businesses to maintain their asset quality in a turbulent environment.

Meanwhile, mixed views on the Fed’s June policy constrain the gold price of any major stock. Steadily rising jobs in the US labor market reinforce the need for further rate hikes, while continued contraction in factory activity and below-normal service activity indicate the Fed it should pause its tightening for once and watch the impact of rising interest rates.

gold technical analysis

The price of Gold is consolidating in a tight range between $1,957 and $1,964 on an hourly basis. The precious metal has moved sideways around the 50% Fibonacci retracement (traced from the Jun 02 high of $1,983.50 to the Jun 05 low of $1,938.15) at $1,960.0.

The 50 period EMA at $1,959.38 is providing cushion for gold bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, indicating that investors are waiting for a new trigger for a decisive move.

Gold hourly chart

XAU/USD Technical Levels


Last Price Today 1960.26
Today’s Daily Change -1.55
Today’s Daily Change % -0.08
Today’s Daily Open 1961.81
20 Daily SMA 1977.94
SMA of 50 Daily 1991.08
SMA of 100 Daily 1939.51
SMA of 200 Daily 1836.8
Previous Daily High 1964.07
Minimum Previous Daily 1938.15
Previous Weekly High 1983.5
Previous Weekly Minimum 1932.12
Maximum Prior Monthly 2079.76
Minimum Prior Monthly 1932.12
Daily Fibonacci 38.2% 1954.17
Daily Fibonacci 61.8% 1948.05
Daily Pivot Point S1 [194528
Daily Pivot Point S2 1928.76
Daily Pivot Point S3 1919.36
Daily Pivot Point R1 1971.2
Daily Pivot Point R2 1980.6
Daily Pivot Point R3 1997.12

Source: Fx Street

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