Gold price forecast remains cautious as XAU/USD hovers below $2,300. The stronger US Dollar impacts the yellow metal during the early Asian session on Monday. Last Friday, gold dropped to one-month lows due to fewer expectations of US Federal Reserve rate cuts this year and bearish news about China stopping its gold purchases in May after 18 months.
Impact of US Employment Data
Stronger-than-expected US employment data led traders to postpone anticipated Fed rate cuts. The US Bureau of Labor Statistics reported a May increase in Nonfarm Payrolls (NFP) to 272K, up from April’s revised 165K (previously 175K). Meanwhile, the Unemployment Rate slightly increased to 4.0% in May from 3.9% in April. The US Dollar gained strength from the strong data, increasing the cost of gold for international buyers.
Market Reactions and Gold Liquidation
The gold price forecast experienced some liquidation, along with other metals, as strong US economic data hinted at delayed Fed rate cuts. Phillip Streible, chief market strategist at Blue Line Futures, noted that the market now sees nearly 49% odds of a rate cut in September, down from 68% before the NFP data. This shift in expectations influenced gold prices.
China’s Pause in Gold Purchases
In May, the People’s Bank of China (PBOC), a significant China gold purchases, stopped its 18-month gold buying streak. This pause occurred as gold prices reached record highs in April and May, according to Bloomberg. Concerns over reduced gold demand added selling pressure on the metal.
China’s Gold Reserves
China’s gold reserves stayed at 72.80 million troy ounces by the end of May, the same as at the end of April. However, the value of China’s gold reserves rose to $170.96 billion in May from $167.96 billion in April.
Gold Price Update
- Today’s Last Price: $2298.55
- Daily Change: +$4.91
- Daily Change (%): +0.21%
- Daily Open: $2293.64
Trends
- Daily SMA20: $2359.39
- Daily SMA50: $2342.36
- Daily SMA100: $2211.64
- Daily SMA200: $2092.22
Levels
- Previous Daily High: $2387.8
- Previous Daily Low: $2286.87
- Previous Weekly High: $2387.8
- Previous Weekly Low: $2286.87
- Previous Monthly High: $2450.1
- Previous Monthly Low: $2277.31
- Daily Fibonacci 38.2%: $2325.43
- Daily Fibonacci 61.8%: $2349.24
- Daily Pivot Point S1: $2257.74
- Daily Pivot Point S2: $2221.84
- Daily Pivot Point S3: $2156.81
- Daily Pivot Point R1: $2358.67
- Daily Pivot Point R2: $2423.7
- Daily Pivot Point R3: $2459.6
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