🔍 Technical Outlook
Support Levels:
$3,201
$3,153
$3,119
Resistance Levels:
$3,258
$3,305
$3,345
Indicators:
RSI: Stabilizing near 44, indicating potential bullish reversal
MACD: Negative, suggesting bearish momentum
50-day MA: Acting as dynamic support around $3,120
Gold prices have experienced a significant correction from the April high of $3,500, finding support around $3,120. The RSI indicates potential for a bullish reversal if prices hold above this level.
📰 Fundamental Developments
US Credit Rating Downgrade: Moody's has downgraded the US credit rating due to large fiscal deficits and rising interest expenses, which has increased demand for gold as a safe-haven asset.
US-China Trade Relations: A 90-day suspension of most tariffs between the US and China has alleviated global recession fears, reducing immediate safe-haven demand for gold.
Stagflation Concerns: Weak US consumer sentiment and rising inflation expectations suggest a lingering stagflation threat, supporting potential demand for gold as a hedge.
📌 Weekly Outlook & Strategy
Bullish Scenario:
A break above $3,258 could target $3,305 and potentially $3,345.
Stabilization above the 50-day MA may reinforce bullish momentum.
Bearish Scenario:
Failure to hold above $3,201 may lead to a retest of $3,153 and $3,119.
A drop below $3,119 could expose deeper support levels near $3,056.
Neutral Scenario:
Consolidation between $3,120 and $3,258 as markets digest recent developments and await key data releases.
📅 Key Economic Events
22 May (Thursday): US Flash Manufacturing PMI and Flash Services PMI