untitled design

Gold Price Forecast: XAU/USD makes fresh weekly highs near $1,980 after US data.

  • XAU/USD accelerated higher after the release of the CLU and the ISM PMI.
  • The US dollar continues to correct lower on Thursday.

Gold rises for the third day in a row, while US Treasury yields continue to fall. The XAU/USD pair recently rallied as high as $1,977, hitting one-week highs following the release of the US ISM Manufacturing PMI.

Gold turns positive on Thursday after US data.

During the European session, the value of the ounce bottomed at $1,952, the lowest level in two days. It then started to recover and gained momentum, reaching levels above $1,970 following the release of US economic reports.

The ADP Employment report showed private payrolls rising by 278,000, beating expectations of 174,000. The dollar rose briefly after the ADP release, but fell again after the Bureau of Labor Statistics announced a revision to first quarter unit labor costs (UCL) from 6.2% to 4.2%.

The dollar’s decline accelerated after the May ISM Manufacturing PMI showed the main index decline from 47.1 to 46.9, disappointing market expectations of 47. The Prices Paid Index also fell sharply, from 53.2 to 44.2, versus expectations of 52, while the Employment Index rose unexpectedly from 50.2 to 51.4.

As a result, the dollar fell to fresh daily lows across the board, in line with lower Treasury yields. US stocks opened mixed on Wall Street.

Gold continues to move with a short-term bullish bias, with the next resistance zone located around $1,980. A consolidation above this level would set the stage for an extension towards $1,995. On the other hand, a firm break below $1,955 would likely remove the bullish bias, adding pressure for a test of $1,946.

technical levels

XAU/USD

Overview
Last price today 1972.35
Today Change Daily 9.69
today’s daily variation 0.49
daily opening today 1962.66
Trends
daily SMA20 1987.97
daily SMA50 1992.15
daily SMA100 1937.59
daily SMA200 1833.6
levels
previous daily high 1974.83
previous daily low 1953.72
Previous Weekly High 1985.3
previous weekly low 1936.77
Previous Monthly High 2079.76
Previous monthly minimum 1932.12
Fibonacci daily 38.2 1966.77
Fibonacci 61.8% daily 1961.78
Daily Pivot Point S1 1952.64
Daily Pivot Point S2 1942.63
Daily Pivot Point S3 1931.53
Daily Pivot Point R1 1973.75
Daily Pivot Point R2 1984.85
Daily Pivot Point R3 1994.86

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular