Gold prices keep the bounce at a three-month low amid cautious optimism, according to market analyst Anil Panchal. DXY continues to pull back from 20-year highs as softer data joins Jerome Powell’s 50bps rate hike outlook. Meanwhile, Covid hopes from China are adding strength to the slightly risky mood of the market.
“Gold prices look set to test $1,800”
Gold prices extended Friday’s U-turn from three-month lows to renew intraday highs around $1,815 receives offers for The yellow metal’s recent rise could be linked to a softer USD and cautious optimism in the market amid Monday’s calm Asian session.
However, as we reported Kriptokoin.com , the US Dollar Index (DXY) is down around 104.50 after making a U-turn from a 20-year high the previous day. remains under. In doing so, the dollar gauge justifies the negative data of the US Michigan Consumer Sentiment Index for May, supported by Fed Chairman Jerome Powell’s reiterated 50bp rate hike concerns.
“Geopolitical concerns weigh on sentiment”
Elsewhere, Reuters’ latest Covid update is softer than Shanghai Hopes to mitigate the virus spreading in China are spreading optimism in Asia, as numbers show. “Chinese financial hub Shanghai reported 869 new local asymptomatic coronavirus cases for May 15, down from 1,203 the day before. Data released on Monday showed that confirmed symptomatic cases fell to 69 from 166 the previous day.
On the contrary, worsening geopolitical concerns in Ukraine are adding to the European Union’s (EU) plans for more sanctions against Russia and putting sentiment under pressure. In addition, broad fears about the advancement of inflation and economic growth due to the covid recovery in China and the Russia-Ukraine struggle are also pushing the air, according to the analyst, not to forget the tighter monetary policies.
Investors will follow this data
Amid these games, S&P 500 Futures posted slight gains after Wall Street benchmarks rallied the previous day. In addition, the US 10-year Treasury rates increased by 1.5 basis points (bps) by around 2.95% according to the press time, prolonging the recovery movements on Friday. For the overall framework, the analyst says:
Going forward, investors will look for more clues to confirm global economic challenges surrounding inflation, which will highlight this week’s April US Retail Sales data.
Gold prices technical analysis: Trend bear
Although oversold RSI conditions triggered gold’s recovery from its lowest levels since February, precious metals, August 2021 It remains below the previous key support line at around $1,830 until press time.
also a bullish combination of challenge recovery, 200-DMA and 61.8% Fibonacci retracement from August 2021 to March 2022 at about $1,835 states that it is. The analyst points out the following levels:
Even if gold prices rise above $1,835, a downward sloping resistance line from April 18 will challenge the bulls around $1,865. On the contrary, the $1,800 threshold and lows marked around $1,780 in January 2022 are attracting gold sellers during the new decline.
Additional key levels for gold prices 
