Selling Gold Price Rebounds to $1,990
Selling Gold Price Rebounds to $1,990
Gold price is showing strength as it advances during Thursday’s Asian session, reaching an intraday high near $1,967. The retreat of the US Dollar and optimism surrounding the passage of the United States debt-ceiling bill in the House of Representatives contribute to the upward momentum. Additionally, recent shifts in the Federal Reserve’s stance and mixed data support the positive sentiment. However, validation from the US ADP Employment Change and key Purchasing Managers’ Indexes is needed for clearer direction.
Today, the price of gold being sold is experiencing positive effects due to reduced concerns about a potential US default. This optimism stems from the reassurance expressed by influential US policymakers regarding the successful passage of the debt-ceiling bill in the House of Representatives. Republican leader Mitch McConnell’s positive remarks increase hopes for the bill’s extension, given that Republicans control the House. However, the presence of hardline Republicans like Rand Paul and Chip Roy may introduce delays and trigger a risk-off sentiment, which keeps Gold buyers cautious.
The Retreat of Federal Reserve Hawks and Mixed US Data Support Gold Bulls
In addition, the United States’ ability to address default concerns keeps optimism in the market. Mixed US data and indications of a potential pause in the Federal Reserve’s rate hike trajectory are favoring Gold buyers. Wednesday’s US JOLTS Job Openings exceeded the market’s expectations. Besides, the Chicago Purchasing Managers’ Index fell below prior levels. Although there have been improvements in the US consumer sentiment gauge, the details have been underwhelming, providing further support to sell gold bullion.
Gold experienced a firming trend on Wednesday, aided by lower Treasury yields. Nonetheless, the robustness of the US Dollar, along with the anticipation of additional interest rate increases and positive sentiment surrounding a potential resolution to the US debt issue, could lead to a decrease in the value of the precious metal, marking its initial monthly decline in a span of three months. Despite the recent gains, Gold bullion bars have lost approximately 1.1% this month, retreating from its near-record highs reached in May.
Key Data and Risk Catalysts to Determine Gold Price Outlook
Moreover, the US House of Representatives continues the ongoing debate on the extension of the US debt ceiling. With a 00:30 GMT vote, the outcome will play a crucial role in determining the direction of the 9ct gold price. A successful passage of the bill to the Senate would help avoid a potential US default. Furthermore, it will help to maintain a firmer stance for XAU/USD. Early indicators for Friday’s US Nonfarm Payrolls (NFP), including the ISM Manufacturing PMI, ADP Employment Change, and S&P Global PMIs for May, will be under the radar for further insights into Gold price trends.
Gold price’s recovery from a horizontal support area and a breakout of a descending trend line since early May will potentially result in the first weekly gain in three weeks. The Moving Average Convergence and Divergence (MACD) further reinforce the bullish sentiment. However, investors need to be cautious as the RSI approaches overbought levels, indicating a key resistance zone near $1,985. Currently, the 200-Simple Moving Average (SMA) level is around $1,992. The psychological level of $2,000 could serve as an additional resistance level before a potential shift in control to the bulls.
Gold Price Declines on Position Trimming, Global Market Trends
On the Multi Commodity Exchange, gold contracts for August delivery experienced a decline of ₹427 or 0.71%. They’re trading at ₹59,771 per 10 grams. This fall in selling gold prices can be attributed to position trimming by market participants. Globally, gold was trading 0.42% lower at USD 1,973.80 per ounce in New York.