Gold is in an upward bullish channel. The price has been confirming the upward resistance line and the upward support line many times. The futures are approaching the support area of the channel. What to expect from the price?
Gold is consolidating between the key Fibonacci levels of 0.382 and 0.5. The price breaks one of the key support levels and tests 0.5 Fibo at 1935.843.
The price starts to form a rebound and most likely from the opening of the session will test the nearest resistance.
Fundamental factors in the new week may play the role of a bullish lever. In that case the price may not reach the support area of the rising channel and starts to strengthen.
After breaking through 1966 and consolidating above that level, the bulls might strengthen the price to 1981 and then to 2000.
But the fundamental factors are unpredictable, so there is a chance of the price bounce from 1966 and continue falling to the level of 0.618 Fibo 1904 (ascending support line).
- May 30, 2023
- May 31, 2023
- June 1, 2023.
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week - analysts expect an improvement
The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) Report on Business is based on data compiled from monthly replies to questions asked of purchasing and supply managers in over 400 industrial companies.
- June 2, 2023
Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity - Analysts expect significant deterioration
The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month - Analysts expect the indicator to deteriorate.
All in all - the fundamental factors, provided the expected data proves to be true, may influence the dollar rather negatively in the coming week and we could see the index decline. At that time this maneuver will be a positive sign for gold and the price of metal may strengthen.
Regards R. Linda!