Gold buy

Gold is again aiming for the psychological level of $2,000 per ounce

02 June 2023 157
Gold is again aiming for the psychological level of $2,000 per ounce

Gold posted its biggest gain in nearly two months last week. Hopes for a pause in the Federal Reserve's (Fed) monetary policy tightening strengthened the precious metal's market position amid progress in a deal on the U.S. national debt ceiling.

 

Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said that the U.S. central bank should not raise interest rates at their next meeting, despite high inflation.

 

At this point, markets are estimating a 73.7% chance that interest rates will remain unchanged in June. This creates a favorable environment for gold.

 

The yellow metal's price rose by 1.7%. This is the best weekly result since early April.

 

Meanwhile, the U.S. Senate on Thursday passed bipartisan legislation backed by President Joe Biden. It implies suspending the national debt ceiling of $31.4 trillion, preventing a first-ever default.

Events regarding the debt ceiling have already paid off. The market switches its attention to the macroeconomic data.  

Yesterday the decline was due to unfavorable economic data from the United States, where business activity in the manufacturing sector slowed down.

 

Today, investors will monitor the U.S. Labor Department's report on nonfarm payrolls (NFP). The data is scheduled to be released at 12:30 GMT. The indicator assesses the absolute change in the number of the country's workers who are officially employed full-time or part-time during the reporting period. The number of employed people is expected to fall to 180K from the previous value of 253K. Expectations for such weak statistics could weigh on the U.S. dollar.

 

The price of gold went beyond the downtrend of the H4 timeframe.

 

In terms of wave analysis, the price is forming the third ascending wave on the hourly time frame. The price has already broken through the top of the first wave at the level of 1975.00, so an active growth phase may start in the near future. The nearest significant resistance lies at the level of $2,000 per ounce.

 

Signal:

Short-term prospects for gold suggest buying.

The target is at the level of 2020,00.

Take profit could be placed near the level of 2000,00.

A stop-loss is at the level of 1952,00.


The bullish trend is short-term, so trading volume should be no more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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