Gold may find its trend in the coming high-impact events this Can solana hit 00 2021week with upward resistance at 1977 and 1964, support at 1950 and 1941 this week. The Fed Decision seems to be a guidance for further downward of gold price. From CFTC Data and Tech bais, the overall upward trend of gold has not reversed in the long run.

 Last week (6.05-6.11), precious metals went mixed, among which, gold saw no change compared to the previous week, while silver raised 3.0%. Gold remained small fluctuation in the whole week due to the coming significant economic data, and the market turned to be cautious.

Source: MacroMicro, The Performance of Major Precious Metals during June 5-11

On June 5th, the Market was disappointed about the US ISM Non-Manufacturing data for May; it clocked in at 50.2, significantly lower than 52.5 expected and 51.9 previously. The growth of US ISM Non-Manufacturing was at a slower pace since February, 2023. The news triggered a sharp drop in the US dollar index, with a decline of up to 0.48%; in contrast, gold found momentum by, up about 0.58%.

Mitrade Analyst

The US ISM Non-Manufacturing Data Disappointment indicates the obvious impact of a higher rate to the US Non-Manufacturing industry.  The Market’s expectation of  the pause was heating up again. Coupled with the over anticipated number of initial unemployment insurance claims filed last week, a high level rate for a long term should keep the US. Gold may be rising, as long as the market concerns stubbornly high inflation significantly far from target level.

A reminder that the tension between Russia and Ukraine is escalating, although it has not triggered a sharp increase in demand for safe-haven assets in the market,  an ongoing monitor to the development of the situation is required.

In addition, the upcoming economic data may change the consolidation trend of gold. If the inflation data  and Fed Decision are in expectation, the market will remain in the expectation of a pause, and US Dollars will be supported by a high rate creating headwinds for gold.

Recently, gold speculative long positions increased, mainly due to a few longs adding to their positions. According to updated CFTC data, speculative long positions increased by 6,325 during May 31-June 6th; meanwhile, speculative long positions in open gold futures contracts also slightly increased by 161, while short positions decreased by 6,164 from the previous period. This reflects a wait-and-see attitude among short-term market investors regarding the trend of gold, but there are still aggressive investors who are bullish.

Mitrade Analyst

In summary, gold is expected to experience a slight volatile decline in the near term due to speculative investors keeping a wait-and-see attitude and some aggressive longs buying in.However, the Fed Decision this week may be significant to the gold price.

Gold tumbled in low vol around 1937-1970 last week.

In terms of technical bais, the MA (60-day) long-term line remains upward, with no downward trend. The RSI(14-day) value of 48 on the 14th is less than 60, indicating that there is still a bearish market; meanwhile, the MACD day line, the short-term line and the long-term line are sticking together which shows no obvious trend. DIFF, DEA are negative, but MACD is positive, indicating that gold is in a consolidation trend, and investors  keep a wait-and-see attitude.

Resistance：1964, 1977 

Surpport：1950, 1941

Source: Investing.com 

Mitrade Analyst

Based on the analysis of various indicators, the overall upward trend of gold has not reversed, however, it tame in a low vol environment and the rise should be encouraged by good news of  high-impact events this week.

In addition, investors need to pay attention to news and economic data that may provide guidance for the future trend of gold this week, such as  US Core Inflation Rate, Fed Interest Rate Decision, ECB Interest Rate Decision,etc..