Despite Gold closed on the upside yesterday’s session, its monthly performance has been almost -6%, making the first bad monthly performance since the beginning of 2016. supporters of this movement the rumors regarding the US rate hike expected for this month (June) which gave a stop to the bullish trend of this year.
The precious metal recovered ground after trading closely to $1.200,00/ounce during Monday’s trading session and at the time of writing it is trading at $1.216/oz with a renewed risk-aversion sentiment on the Brexit fears which push the purchasing of safe haven assets.
An eventful session opening this morning, with two rebounds during the first trading hours following disappointing Chinese PMI data and better short and long term bond yields which weight on the non-interest commodities.
Today’s important data will be a series of report on the US manufacturing sector activity, while tomorrow’s ADP labour data will attract the attention of the market probably influencing the precious metals price action.
From a technical point of view:
After a 9-day decline, the yesterday’s recover is not an indicator of the end of the downside move, even considering that the price is still under the 20 and 100 SMA.
On the short term however the sentiment is bullish, with the possibility that soon the commodity would gain the $1.230/oz level.
The first immediate resistance is seen @1.223,50 (100 DMA) followed by the 1.232,10 one. On the opposite side the first significant support is positioned @ 1.210,40 followed by the psychological support at 1.200.