Gold Price Analysis: XAU/USD renews 5-day lows, drops below $1,710
- 15th June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS
- Gold starts the week on the back foot, loses more than 1%.
- Global equity indexes post heavy losses on Monday.
- US Dollar Index rises for the third straight day.
The XAU/USD pair started the new week on the back foot and dropped to a fresh five-day low off $1,708. Although the pair recovered slightly, it’s still losing 1.15% on the day at $1,711.
Last week, the troy ounce of the precious metal capitalized on risk-off flows and gained more than $40. Although the market mood remains sour on Monday, XAU/USD is struggling to preserve its bullish momentum on broad-based USD strength.
DXY extends recovery into a third straight day
Following the sharp drop witnessed during the first half of the previous week, the US Dollar Index (DXY) staged a decisive rebound amid heightened worries over a second coronavirus wave hitting the US economy. After ending the week in the positive territory, the index is stretching higher on Monday, causing the bearish pressure on XAU/USD to remain intact. At the moment, the DXY is up 0.12% on the day at 97.20.
Meanwhile, the data from China are weighing on market sentiment on Monday. Retail Sales in May declined by 2.8% on a yearly basis to come in worse than the market expectation for a fall of 2%. Additionally, Industrial Production during that period rose by 4.4%, again missing analysts’ estimate of 5%.
In the second half of the day, the Federal Reserve Bank of New York’s Empire State Manufacturing Survey will be looked upon for fresh impetus. More importantly, investors will be keeping a close eye on Wall Street’s performance. As of writing, the S&P 500 futures were down 1.8% on the day, suggesting that major equity indexes in the US are likely to open deep in the negative territory.
Technical levels to watch for
|Today last price||1711.54|
|Today Daily Change||-19.04|
|Today Daily Change %||-1.10|
|Today daily open||1730.58|
|Previous Daily High||1743.09|
|Previous Daily Low||1722.44|
|Previous Weekly High||1744.75|
|Previous Weekly Low||1677.73|
|Previous Monthly High||1765.38|
|Previous Monthly Low||1670.72|
|Daily Fibonacci 38.2%||1735.2|
|Daily Fibonacci 61.8%||1730.33|
|Daily Pivot Point S1||1720.98|
|Daily Pivot Point S2||1711.39|
|Daily Pivot Point S3||1700.33|
|Daily Pivot Point R1||1741.63|
|Daily Pivot Point R2||1752.69|
|Daily Pivot Point R3||1762.28|