Market news

23 June 2022

Gold Price Forecast: XAUUSD jumps to fresh daily high, bulls await move beyond 200-DMA

  • Gold attracted some dip-buying in the vicinity of the weekly low and shot to a fresh daily high.
  • The ongoing slide in the US bond yields capped the USD and offered support to the commodity.
  • Hawkish Fed expectations might hold back bulls from placing aggressive bets around the metal.

Gold reversed an intraday slide to the $1,824 area, back closer to the weekly low touched the previous day and shot to a fresh daily high during the early North American session. The XAUUSD was last seen trading, around the $1,840-$1845 region, up 0.25% for the day, with bulls still awaiting a sustained move beyond the very important 200-day SMA.

The ongoing steep decline in the US Treasury bond yields forced the US dollar to trim a part of its intraday gains, which, in turn, offered support to the dollar-denominated commodity. That said, a combination of factors held back bulls from placing aggressive bets and kept a lid on any meaningful intraday upside for gold, for the time being.

A turnaround in the global risk sentiment - as depicted by a generally positive tone around the equity markets - acted as a headwind for the safe-haven precious metal. Apart from this, expectations that the Fed would tighten its monetary policy at a faster pace to curb soaring inflation might also contribute to capping gains for the non-yielding gold.

The worsening global economic outlook, however, might continue to lend support to the XAUUSD and help limit any meaningful decline. Investors remain concerned that a more aggressive move by major central banks would pose challenges to the global economic recovery. Adding to this, Thursday's disappointing Eurozone PMIs further fueled fears about a possible recession.

The mixed fundamental backdrop warrants caution before positioning for any firm near-term direction for gold prices. This makes it prudent to wait for strong follow-through buying beyond the overnight swing high, around the $1,847-$1,848 region, to support prospects for additional near-term gains, possibly towards the $1,870-$1,880 supply zone.

Technical levels to watch

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location