Gold prices rose due to a weaker dollar and anticipation of U.S. inflation data, with expectations of new record highs by the end of the year. Traders are pricing in a 64% probability of the Fed cutting rates in June according to the Fedwatch tool, with strong support for gold prices from Chinese household demand and central bank purchases. Also if we take a look at the commitment of traders report we will see that the number of commercial traders is still declining hinting that the price of gold might decline in the near short-term outlook.
From the technical point of view, the price has found sufficient support on the 20 day moving average and has since corrected to the upside. On the other hand, the all time high of mid-March in combination with the upper band of the Bollinger bands are a strong resistance to the price which could potentially push the price down in the coming sessions. If this scenario plays out then the first are aof possible support might be found around the $2,150 which is the psychological support of the round number, the 23.6% of the daily Fibonacci retracement level as well as the area of price reaction in mid-March.
From the technical point of view, the price has found sufficient support on the 20 day moving average and has since corrected to the upside. On the other hand, the all time high of mid-March in combination with the upper band of the Bollinger bands are a strong resistance to the price which could potentially push the price down in the coming sessions. If this scenario plays out then the first are aof possible support might be found around the $2,150 which is the psychological support of the round number, the 23.6% of the daily Fibonacci retracement level as well as the area of price reaction in mid-March.