Huitong Finance APP News-Gold price fell slightly in the early Asian trading on Monday, trading around $3,300 per ounce. Affected by the U.S. non-farm employment data in May exceeded expectations, the dollar rebounded, suppressing the rise in gold prices denominated in US dollars.
The U.S. Bureau of Labor Statistics showed that the non-farm employment population increased by 139,000 in May, higher than the expected 130,000, and the unemployment rate remained at 4.2%, while the average annual hourly wage rate was 3.9%, which was also better than market expectations. Although the non-farm data in April was revised down from 177,000 to 147,000, the overall data still shows that the US labor market remains resilient.
"This set of data strengthens the possibility that the Fed will keep interest rates unchanged in the next two meetings and further supports the dollar trend," noted a strategist for the U.S. investment institution.
Affected by this, the short-term trend of gold is under pressure, and investors turn to a wait-and-see attitude, waiting for a clearer news push.
The market is currently turning its focus to the Asian powers and the U.S. trade negotiations to be held later in London on Monday. Former U.S. President Trump revealed that the two sides will hold their first interview on economic and tariff issues.
"Any 'hawkish' rhetoric could drive a short-term jump in gold," said a macro research analyst, according to market research.
From the technical graph, the daily trend of gold (XAU/USD) remains at the upper edge of the oscillating range. The current price is stable around US$3,300, close to the middle track of the Bollinger Band, indicating that the market direction is still unclear.
MACD indicator has a slightly dead cross, with neutral momentum and shortness; while RSI remains above 50, indicating that the market has not completely turned to short positions.
If the price breaks through the $3330 resistance level, it is expected to hit the $3355 area again; on the contrary, if it falls below the $3285 support, it may fall to the key defense line of $3250.
Editor's view:
The current gold market is in a critical stage of the game between fundamentals and technical aspects. On the one hand, the Federal Reserve suppressed the momentum of rising gold due to its unmoved expectations. On the other hand, the geopolitical uncertainty caused by global trade sentiment provides safe-haven support for gold prices.
Before the major event is clear, gold may fluctuate between US$3300 and US$3330.
Source: Huitong.com
