Gold Price Forecast: Rebound Breaks $1,990, More Resistance Needed for Bullish Momentum

Asian session witnessed some bullish sentiment in gold price after it dropped below $1,990.00. The US dollar index struggles to sustain its upward trend above 102.70, providing a rebound opportunity for gold. However, gold lacks a strong upward momentum and requires breaking through more resistance levels to gain traction.

Despite the delay in reaching an agreement to raise the US debt ceiling, S&P 500 futures in the Asian session show notable gains. It is certain that approving a default is not feasible. Each negotiating representative acknowledges the potential disaster of increasing spending while raising the US debt ceiling.

The delay in approving the debt ceiling increase boosts demand for US government bonds, leading to a decline in the yield of 10-year Treasury bonds to 3.53%.

The US dollar index faces resistance after its continued rebound above 102.70. Slowing pace of US retail sales reinforces market expectations for the Federal Reserve (Fed) to maintain a stable monetary policy stance. Retail sales for the month recorded a 0.4% increase, lower than the expected 0.7%. While retail sales show modest growth, it is insufficient to impact market expectations regarding the Fed's stable monetary policy.

Gold Price Technical Analysis

Gold price has broken above the ascending channel pattern on the 4-hour chart; however, further resistance lies ahead. The key resistance level is located at $1999.54, representing a hurdle within the downtrend since the low on May 5th. The 10-period Exponential Moving Average (EMA) continues to act as resistance around $2000.00, reinforcing the downward bias.

The Relative Strength Index (14) has entered the bearish zone between 20.00 and 40.00, suggesting further downside for gold price.

Gold Price:

Overview

Latest Price: $1992.16

Intraday Change: $2.94

Intraday Change %: 0.15

Opening Price: $1989.22

Trends

20-day Moving Average: $2007.91

50-day Moving Average: $1978.5

100-day Moving Average: $1924.06

200-day Moving Average: $1823.15

Levels

Previous Day High: $2018.38

Previous Day Low: $1985.53

Weekly High: $2048.27

Weekly Low: $2000.95

Monthly High: $2048.75

Monthly Low: $1949.83

Daily Chart 38.2% Fibonacci Retracement Level: $1998.08

Daily Chart 61.8% Fibonacci Retracement Level: $2005.83

Daily Chart Pivot Support 1: $1977.04

Daily Chart Pivot Support 2: $1964.86

Daily Chart Pivot Support 3: $1944.19

Daily Chart Pivot Resistance 1: $2009.89

Daily Chart Pivot Resistance 2: $2030.56

Daily Chart Pivot Resistance 3: $2042.74

*The provided information by WikiFX is for reference purposes only and should not be considered as financial advice or investment recommendation.