Gold price today: U.S. manufacturing shows optimistic data, gold moderately go down (With Trading Strategy)

Although the Fed governor had previously reiterated the dovish stance, gold futures prices also fell slightly due to stronger-than-expected US economic data and rising U.S. bond yields, continuing the decline from a five-month high overnight.

Spot gold prices fell by US$2.91, or about 0.15%, to US$1,897.54 per ounce.

Gold futures prices fell 6.05 US dollars, or about 1.32%, to 1,898.95 US dollars per ounce.

US dollar index futures, which measures the trend of the US dollar against six major trade-weighted currencies, rose 0.13% to 89.938.

The price of gold once climbed to $1916 per ounce, but it has recently begun a downward correction. The price of gold has fallen below the level of US$1,900 per ounce. However, the price of gold was well supported above US$1880 per ounce.

Aslam, chief market analyst at AvaTrade, said, “Most of the fluctuations in the price of gold are related to the weakness of the US dollar index. Even though the US economic data (personal consumption expenditure) was positive last Friday, the US dollar index did not gain much momentum.”

Pay attention to Friday’s US non-farm payrolls data

"Traders may become overly complacent about this transaction, believing that the main trend in the gold price is mainly upward. They simply don't worry about a rebound in the US dollar index, which will leave them completely unprepared for unexpected shocks."

Commerzbank analyst Carsten Fritsch quoted Bloomberg data as saying that gold's rise in May was also accompanied by strong ETF purchases, with a total purchase of 49 metric tons in May.

"This is the first month of net inflows since January and the largest single-month net inflows since September 2020. Given the high inflation expected in the coming months and the resulting apparent negative real interest rates, the demand for ETF investors should remain It will stay high, which will benefit gold," Fritsch said.

Edward Moya, senior market analyst at Oanda, said, "The May U.S. employment report to be released this Friday will be the blockbuster news for this inflationary deal, as it will also become a catalyst for the increase in government bond yields."

"Tuesday’s manufacturing data did not change inflation. Inflation still looks temporary, but it does question the recovery of the labor market. The Fed’s ultra-loose stance may be confirmed on Friday. At present, the public is still expecting the next few days. Months will still be full of pressure from rising prices.”

Trading strategy (Source: Trading Central)

Pivot: 1906.00

Our preference: short positions below 1906.00 with targets at 1894.00 & 1887.00 in extension.

Alternative scenario: above 1906.00 look for further upside with 1913.00 & 1919.00 as targets.

Comment: the RSI is bearish and calls for further decline.

Supports and resistances:

1919.00

1913.00

1906.00

1898.00 Last

1894.00

1887.00

1882.00

Guideline for Trading Central strategy

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart：

‧30MIN and 1H chart shows the trading suggestions for intraday

‧Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is  MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators:  Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference. 

4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.