Market news
27.06.2022, 09:05

Gold Price Forecast: XAUUSD holds steady near daily peak near $1,840 area, just below 200-DMA

  • A combination of supporting factors pushed gold prices higher on the first day of a new week.
  • G7 nations plan to ban bullion imports from Russia and acted as a tailwind amid a weaker USD.
  • The risk-on impulse held back bulls from placing aggressive bets and capped any further gains.

Gold attracted some dip-buying after filling the weekly bullish gap and climbed to a fresh daily high during the early part of the European session. The XAUUSD was last seen trading around the $1,840 region, with bulls still awaiting sustained strength beyond the very important 200-day SMA.

The recent sharp decline in commodity and energy prices now seems to have eased fears about the risk of a further rise in inflationary pressures. Furthermore, some high-frequency data indicate that the growth momentum in the US is starting to cool. This forced investors to reassess the prospects of more aggressive rate hikes by the Federal Reserve, which dragged the US dollar to over a one-week low on Monday and benefitted the dollar-denominated gold.

Some countries, including the US, UK, Japan, and Canada, plan to announce a ban on new gold imports from Russia during the G7 summit ban bullion imports from Russia during the G7 summit this week. This was seen as another factor that acted as a tailwind for the XAUUSD. The upside, however, remains capped, at least for the time being amid a generally positive tone around the equity markets, which tends to drive flows away from the traditional safe-haven XAUUSD.

Meanwhile, the risk-on impulse pushed the US Treasury bond yields higher and was seen as another factor that kept a lid on any meaningful upside for the non-yielding yellow metal. This, in turn, warrants some caution before placing aggressive bullish bets around gold. Market participants now look forward to the US economic docket - featuring the release of Durable Goods Orders and Pending Home Sales later during the early North American session.

This, along with the US bond yields and the USD price dynamics, should provide some impetus to gold. Traders will further take cues from the broader market risk sentiment to grab short-term opportunities around the commodity.

Technical levels to watch

 

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location