On Monday (June 6), the international gold price edged higher, supported by a correction in the U.S. dollar index, with a short-term view of $1,864. However, the future trend of gold prices is still vulnerable to the impact of sharp interest rate hikes by major central banks around the world. The previously released U.S. non-farm payrolls report was upbeat, reinforcing the Fed's hawkish expectations and negatively affecting precious metals.

At GMT+8 15:06, spot gold rose 0.18% to US$1,854.65 per ounce; the main COMEX gold futures contract rose 0.38% to US$1,857.2 per ounce; the US dollar index fell 0.22% to 101.956.

Gold prices on Friday (June 3) hit a new high of $1,873.99 an ounce since May 9, but after the release of the U.S. non-farm payrolls report for May, they closed down nearly 1%, as U.S. employers hired more workers in May than expected, strengthening the raised the possibility that the Fed would extend its May policy in June and July by continuing to raise interest rates by 50 basis points at each meeting.

Gold bulls attempt a comeback ahead of the U.S. inflation report. Continued strength in oil prices helped gold find support, restoring its demand as a hedge against inflationary concerns driven by energy costs.

Yeap Jun Rong, market strategist at IG, said: "After the latest U.S. non-farm payrolls report, market participants will continue to pay close attention to any clues on the central bank's policy outlook, and the weekly CPI data will provide the market with an indication of the Fed's policy signals. provide new evidence."

"Gold is benefiting from the Russia-Ukraine conflict, which has led to geopolitical uncertainty, rising inflation and recession fears, with central banks looking to raise interest rates to cool demand and curb inflation," Fitch Group said in a research note.

After the market closed last week, the open interest and trading volume of COMEX gold futures fell together, suggesting that there is little chance that prices will continue to fall in the short term. However, the 200-day simple moving average near $1,840 provides decent support.

On the daily chart, the price of gold is in an upward ((C)) wave that started from $1,828. On the hourly chart, the price of gold is in the up 3 waves starting from $1,847, with the upper resistance looking at the 38.2% target at $1,864. Wave 3 is a subwave of wave ((C)).

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