Gold Price Bounces Back Ahead of 50-Day SMA

Gold Price Outlook: XAU/USD

The price of gold bounces back ahead of the 50-Day SMA ($3274) to initiate a series of higher highs and lows, and the precious metal may extend the rebound from the start of the week as it holds above the monthly low ($3289).

Gold Price Bounces Back Ahead of 50-Day SMA

In turn, the price of gold may continue to track the positive slope in the moving average should it push above the opening range for June, but the ongoing shift in US trade policy may sway the precious metal as President Donald Trump announces that ‘our deal with China is done.’

Join David Song for the Weekly Fundamental Market Outlook webinar.

David provides a market overview and takes questions in real-time. Register Here

 

The dissipating threat of a trade war may curb the appeal of gold as President Trump insists that ‘President Xi and I are going to work closely together to open up China to American trade,’ and the precious metal may no longer reflect the bullish trend from earlier this year as it appears to be stuck within the April range.

With that said, the price of gold may threaten the positive slope in the 50-Day SMA ($3274) if it fails to defend the rebound from the monthly low ($3289), but bullion may attempt to break out of the opening range for June as it carves a bullish price series.

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView

• The price of gold starts to carve a series of higher highs and lows as it extends the rebound from the start of the week, with a move/close above $3370 (161.8% Fibonacci extension) bringing the monthly high ($3404) on the radar.
• A breach above the May high ($3435) opens up the yearly high ($3500), but failure to hold above the monthly low ($3289) may keep the price of gold within the April range.
• A move/close below $3280 (100% Fibonacci extension) raises the scope for a move toward the $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) zone, with the next area of interest coming in around the May low ($3121).

Additional Market Outlooks

US Dollar Forecast: USD/CHF Falls Toward Monthly Low amid Soft US CPI

US Dollar Forecast: EUR/USD Holds Above Monthly Low Ahead of US CPI

Canadian Dollar Forecast: USD/CAD Coils Within June Opening Range

AUD/USD Climbs Toward Monthly High amid US-China Trade Talk

--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong