Gold prices increase as the dollar begins the week on a weaker note. The dollar experienced negative pressure in light of sluggish growth projections and the possibility of recession. Today, benchmark rates increased as shares soared. Today, the ten-year yield jumped by three basis points.
Monday’s economic calendar was light. Focus continues on Fed Chair Powell‘s speech tomorrow and this week’s release of major economic statistics, including the PCI and GDP for the first quarter. Investors continue to be anxious about the possibility of a recession and sluggish economic development.
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Gold prices have retreated from their session highs, but they are still rising and may be headed towards the 1860s. This week’s key economic statistics might imply a slowdown in economic expansion, which could be bullish for gold.
To begin the week, gold prices maintained above the 200-day moving average of $1,839, facing upward momentum. Near 1839, there is support near the 200-day moving average. Near the May 12 peak of 1858, resistance is observed.
The Fast Stochastic created a crossing buy signal, indicating favorable near-term momentum. With a fast stochastic reading of 54.58, considerably above the oversold trigger threshold of 20, prices are no longer oversold.
As the MACD may provide a crossing buy signal, medium-term momentum turns positive. This occurs when the 12-day moving average minus the 26-day moving average crosses below the MACD line’s 9-day moving average.
The trajectory of the MACD (moving average convergence divergence) histogram is negative, indicating falling prices.