Gold prices fell on Monday, falling below $2,300 an ounce, hitting their lowest level this month. The event occurred after the publication of strong employment data in the United States. The data in turn dampened expectations that the Federal Reserve will cut interest rates soon this year.
A report released Friday showed the U.S. economy added 272,000 jobs in May, 100,000 more than analysts had forecast. Current numbers indicate a resilient labor market and significantly reduce the likelihood of a rate cut from the Fed in the near future. The probability of this event in September is already estimated at approximately 50%, compared to 70% before the publication of the data.
In addition, China’s central bank suspended gold purchases in May, which also put pressure on prices. China has been buying gold for the past 18 months in a row. Investors are now awaiting the Fed’s interest rate decision, as well as key US inflation data, which will be published this Wednesday.
GOLD Forecast and analysis for June 11, 2024
XAU/USD quotes continue to move as part of the development of the fall and the beginning of the “Head and Shoulders” reversal pattern. At the time of publication of the forecast, the price of Gold is 2299 Dollars per Troy Ounce. Moving averages indicate a short-term bullish trend. Prices have broken through the area between the signal lines downwards, which indicates pressure from sellers of the asset and a potential continuation of the fall from current levels. At the moment, we can expect an attempt to develop a bullish correction and a test of the resistance level near the 2315 area. From where we can expect a downward rebound and a continued fall in the price of Gold with a potential target below the level of 2145.
An additional signal in favor of a decrease in XAU/USD quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a breakout from the lower border of the reversal pattern. Cancellation of the option to reduce prices for Gold on June 11, 2024 will be a strong rise in prices and a breakdown of the level of 2365. This will indicate a breakdown of the resistance area and continued growth of asset quotes to the area above the level of 2425. Expect an acceleration in the fall of XAU/USD quotes with a breakdown of the support area and closing prices below level 2285.
GOLD Forecast and analysis for June 11, 2024 assumes an attempt to develop a price correction and test the resistance area near the level of 2315. Further, a continued fall in quotations of the non-ferrous metal with a target below the level of 2145. The cancellation of the option to reduce prices for Gold will be a strong increase in value asset in the markets and a breakdown of the level of 2365. This will indicate a continued rise in the price of Gold with a potential target above the level of 2425.
