Gold forms a surge on Monday based on US government debt information. From the opening session and after the US and UK weekend, the price makes a false break of a strong support area, after which the market began to buy the fall.
The price is testing the support of 1939 and 1935 in a false breakdown format. After capturing the liquidity, the market is quite active and strong to buy back the decline. At the moment the price is testing the 1955 area. This week might be quite bullish from a fundamental analysis point of view.
On Monday, the House Rules Committee said it would meet Tuesday afternoon to discuss the debt ceiling bill, which must be approved by June 5.
This comes after the U.S. president and the speaker of the House on Sunday signed an agreement to temporarily freeze the debt ceiling and limit some federal spending, aimed at preventing a default on the U.S. debt. WHAT caused the market to entrain volatility in the dead market on Monday.
The price returns to a sideways range of 1949 -1984. A break of the descending channel resistance might cause the local trend and correction to be halted and the price will start an active strengthening towards 1984, 2000 and 2025.
Strong support: 1949, 1939, MA-50
Strong resistance: MA-200, 1957, trend resistance
I think that in the middle term the gold will manage to break through the trend resistance and renew the growth, because the dollar is having hard times, and the gold is still a good hedging instrument.
Regards R. Linda!