Spot gold may retest a resistance US$1,797 per ounce, a break above which could lead to a gain to US$1,825, Reuters reports.
The metal stabilized around a support at US$1,769. The stabilization signals a completion of the wave from US$1,902.70. Indeed, the whole correction from US$1,916.40 could have completed.
A break below US$1,758 may trigger a drop limited to US$1,744.
· Gold Price Forecast: Recapturing $1797 is critical for XAU/USD bulls – Confluence Detector
Gold price is attempting a 1% recovery so far this Monday, heading towards the $1800 mark amid a sight pullback in the US dollar across the board. The narrative that the Fed’s hawkish stance has tempered the reflation bets seems to have taken a back seat, as the US Treasury yields recover across the curve alongside a turnaround in the risk appetite. The greenback also suffers from an improved market mood, helping gold price stage a decent rebound.
However, with Fed policymakers hinting at sooner than expected rate hikes as early as next year, gold’s upside attempts appear limited. Gold price will remain at the mercy of the dollar’s price action ahead of the Fedspeak, as the data docket remains scarce.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that gold price is approaching a minor hurdle at the Fibonacci 61.8% one-day of $1785 on the road to recovery.
If the recovery picks up additional strength, then the bulls could target $1788, a confluence of the Fibonacci 23.6% one-week and pivot point one-day R1.
Recapturing the $1797 barrier is critical for gold price to extended the reversal from two-month lows of $1761.
On the flip side, strong support aligns at $1775, which is the convergence of the Fibonacci 38.2% one-day and the previous low one-hour.
The next downside target is envisioned at $1770, the intersection of the Fibonacci 23.6% one-day and SMA5 four-hour.
The previous month’s low at $1766 will be on the sellers’ radars if the above support caves in.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.1% to 1,053.06 tonnes on Friday from 1,041.99 tonnes on Thursday.
Russia’s gold reserves stood at 73.7 million troy ounces, as of the beginning of June, the central bank said on Friday.
· CNH Industrial in $2.1 billion deal to buy Raven Industries
CNH Industrial has agreed a deal to buy Raven Industries to strengthen its position in the agricultural equipment business as the Italian-American vehicle maker prepares to spin off its truck, bus and engine operations.
· China deposit rate reform to have limited impact - industry body
China’s reforms to the way banks calculate deposit rates will have only a limited impact on financial institutions and depositors, and banks do not need to sharply adjust deposit rates, an industry body overseeing rates said on Monday.
The body said the previous practice of multiplying the benchmark rate helped push up long-term rates and led to competition among banks to lure deposits by raising rates or unveiling innovative products.
From Monday, June 21, China will allow banks to set ceilings on deposit rates by adding basis points to the benchmark rate, a shift from the previous practice of multiplying the benchmark rate, the Self-Disciplinary Mechanism for the Pricing of Market-Oriented Interest Rates said.
· China has administered more than 1 billion doses of its Covid-19 vaccines
China has administered more than a billion doses of its Covid-19 vaccines, a key milestone in the world’s largest inoculation drive.
As of Saturday, 1,010,489,000 doses had been given to people in China, according to the country’s National Health Commission (NHC). More than 100 million doses had been administered in the six days up to and including Saturday.
· Bank of England set to stay split on QE after inflation jump
Britain's top central bank officials look set to remain divided this week over whether to pull the plug on their 875 billion-pound ($1.2 trillion) government bond purchase programme, after inflation hit its highest in nearly two years.
Bank of England chief economist Andy Haldane was alone in May when he voted to halt the quantitative easing (QE) bond purchases in August once they reached 825 billion pounds.
Economists expect Haldane to retain this stance when the BoE announces its latest policy decision on Thursday and are looking to see if others on the Monetary Policy Committee join him.
· Goldman Sachs expands transaction bank to Britain
· Australia's new deputy PM casts shadow over 2050 net zero emissions ambition
Reference: CNBC, Reuters, The Standard, FXStreet
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