24K99 News Suppressed by the strengthening of the US dollar and the hawkish stance of the central bank, spot gold fell by US$37 this week and closed at around US$1,920 per ounce. Nicholas Kitonyi, an analyst at the well-known financial website FXDailyReport, wrote his latest article on Friday to analyze the future trend of gold.
Gold rallied from trendline support around $1,910 an ounce to about $1,918 an ounce on Friday after the latest round of data, Kitonyi wrote. Gold prices appear to be trading within a descending channel on the 60-minute chart.
Kitonyi noted that gold prices have now fallen below the 100 hourly moving average. However, Friday’s rebound helped gold prices return to normal trading territory from oversold levels on the 14-hour relative strength index (RSI).
Spot gold closed this week down $37.24, or 1.9%. The price of gold closed at US$1,920.44 per ounce this week, and hit a minimum of US$1,910.04 per ounce on Friday, which is also the lowest point of gold prices this week.
Data from the S&P Global Manufacturing, Services and Composite Purchasing Managers Index (PMI) reports for June on Friday showed that business and manufacturing activity is deteriorating globally, especially in the United States.
In the U.S., the Markit manufacturing PMI fell to a six-month low of 46.3, the lowest since December 2022, lower than the expected 48.6 and last month’s 48.4; the service PMI was 54.1, slightly better than the expected 54, but lower than the previous month’s 48.4. 54.9 in May. As a result, the Composite PMI fell to 53 in June from 54.3, the lowest level since March.
In Europe, the June PMI data report for the euro zone compiled by S&P Global was released on Friday. In June, the Eurozone Composite PMI recorded 50.3, a five-month low, lower than analysts’ expectations of 52.5.
Investors now appear concerned about economic headwinds from rapidly rising borrowing costs, analysts said. This was evident from the prevailing cautious sentiment in the stock market, which limited losses in safe-haven gold.
In terms of short-term trends, Kitonyi said that from a technical perspective, gold prices appear to be trading in a descending channel on the 60-minute chart. This suggests a clear short-term bearish bias in market sentiment.
Therefore, gold bears will look for a continuation of the downtrend in gold prices and towards around $1910/oz, or lower down to $1902/oz. Gold bulls, on the other hand, will target short-term profit at around $1,924 an ounce, or as high as $1,931 an ounce.
(Source of spot gold 60-minute chart: FXDailyReport)
On the daily bar chart, gold prices appear to be trading in a downtrend channel, Kitonyi noted. This points to a clear long-term bearish bias in market sentiment.
Therefore, gold bears will look for gold to extend the current decline and move towards $1869/oz or lower to $1803/oz. Gold bulls, on the other hand, set long-term profit targets around $1,983 an ounce, or as high as $2,049 an ounce.
(Source of spot gold daily chart: FXDailyReport)
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