Gold is taking a breather after hitting the all-time high of $2450.06 per troy ounce on May 20. Despite a subsequent correction, Gold remains on an upward trajectory, as various technical indicators indicate. A potential breakout above the downtrend line will open the way for Gold prices to retest the highest price ever reached. Traders are expected to closely monitor the market in light of the forthcoming release of significant economic data that could impact the commodity's price.
Overview
Gold is taking a breather after hitting the all-time high of $2450.06 per troy ounce on May 20. Despite a subsequent correction, Gold remains on an upward trajectory, as various technical indicators indicate. A potential breakout above the downtrend line will open the way for Gold prices to retest the highest price ever reached. Traders are expected to closely monitor the market in light of the forthcoming release of significant economic data that could impact the commodity's price.
High Impact Economic Events
Wednesday 12:15 pm (GMT+0): ADP Non-Farm Employment Change (USD)
Wednesday 12:15 pm (GMT+0): Unemployment Claims (USD)
Wednesday 02:00 pm (GMT+0): ISM Services PMI (USD)
Wednesday 06:00 pm (GMT+0): FOMC Meeting Minutes (USD)
Thursday 06:30 am (GMT+0): CPI m/m (CHF)
Thursday All Day: Parliamentary Elections (GBP)
Thursday 06:30 am (GMT+0): CPI m/m (CHF)
Friday 12:30 pm (GMT+0): Employment Change (CAD)
Friday 12:30 pm (GMT+0): Unemployment Rate (CAD)
Friday 12:30 pm (GMT+0): Average Hourly Earnings m/m (USD)
Friday 12:30 pm (GMT+0): Non-Farm Employment Change (USD)
Friday 12:30 pm (GMT+0): Unemployment Rate (USD)
Sunday All Day: French Parliamentary Elections (EUR)
Technical Analysis
Gold is currently in a consolidation phase, trading between its all-time high and $2277.24 per ounce. After hitting its highest price ever at $2450.06, Gold experienced a bearish reversal, leading to a corrective phase. Despite this correction, Gold is still in an uptrend, as shown by the 50-period Exponential Moving Average (EMA), the Momentum oscillator, and the Average Directional Movement Index (ADX). Specifically, Gold's prices are above the EMA, the Momentum oscillator values are above the 100 baseline, and the ADX is above the 25 level.
Potential Upside Targets
If the bulls manage to maintain control of the Gold market, traders may consider the following three potential upside targets:
2368.69: The initial price objective is seen at 2368.69, representing the daily high marked on June 21.
2387.69: The second price objective is 2387.69, aligning with the peak marked on June 7.
2450.06: An additional resistance level is determined at 2450.06, representing the all-time high marked on May 20.
Potential Downside Targets
If the bears manage to take control of the market, traders may find potential opportunities in the following three downside targets:
2293.64: The initial downside target is seen at 2293.64, representing the trough marked on June 26.
2277.24: The second support level is estimated at 2277.24, aligning with the trough marked on May 3
2222.91 The third price objective is calculated at 2222.91, corresponding to the peak formed on March 20.
Conclusion
Gold retraced after reaching the all-time high price of 2450.06 on May 20. A breakout above the downtrend line will open the way for higher Gold prices and an opportunity to retest and exceed the current record. It is paramount for traders to remain up-to-date with the latest geopolitical and economic developments, exercise caution, and closely monitor market trends to optimize their investments and mitigate potential risks or losses.