{x} | Trading.live

Fundamentals

On Monday (June 26th), spot gold rebounded slightly during the Asian session and is currently trading near $1926. The geopolitical situation has been volatile and unpredictable over the weekend. The Belarusian President's office said that the Russian mercenary leader Prigozhin has agreed to stop the activities of Wagner fighters in Russia, agreed to de-escalate the situation, ordered the withdrawal of troops to their bases, and that the criminal case against Prigozhin will be dropped and he will go to Belarus. Now, the world, the U.S., NATO, and investors are all confused, and the 'civil war' ends within one day. Besides, today's normal opening has little impact on trading, gold prices oscillated slightly, but as the geopolitical tensions rose during the weekend, the oscillations of gold could be more violent this week.

Data: U.S. June Markit manufacturing PMI value was 46.3, lower than the expected value of 48.5 and the previous value of 48.4. In addition, U.S. June Markit services PMI value was 54.1, lower than the expected value of 54 and the previous value of 54.9.

Key data for investors to watch today: Germany's June IFO Business Climate Index, the U.K. June CBI retail sales differential. Key events to watch: the Bank of Japan released a summary of comments regarding the June monetary policy meeting, the Bank of England monetary policy member Dingella delivered a speech, and the ECB Forum on Central Banking would be held until the 28th of June.

Technical Analysis

Daily chart: last week's continuous downward consolidations released a certain adjustment rebound demand. Last Friday, a rapid pull-up took place and an oversold adjustment followed, but gold retraced later, demonstrating that the market sentiment is still weak. Furthermore, the current SMAs are under a bearish divergence pattern, indicating the  weakness of gold. Therefore, investors could consider the support and resistance of the averages today, focusing on the resistance near the 10-day SMA ($1938), where gold rebounded last Friday without crossing through, whose strength is determined by the movement near $1938. If it stands stably above $1938, gold may reach $1950, or $1970. Instead, if gold runs under $1938 weakly, try to consider $1910 or even $1900.

Trading recommendations today: Trade according to the short-term oscillations since there is no sign for a clear direction. Consider the resistance near $1930 today, and look above the resistance at $1938 if gold climbs up. If gold falls from high, gold will be confirmed technically failing to surge higher and turn weaker. Then, investors should care about the support near $1910, and gold will not move much during the Asian session. Moreover, gold is resistant against a depreciation based on what happened during the weekend. Therefore, try to go long at lows during the U.S. session despite a small space. For further instructions, investors should consider short-selling near $1938. In general, the trading range will be $1920-$1938, where investors should buy lows and sell highs instead of chasing the trend.

Trading Recommendations

Trading direction: Long

Entry price: 1920

Target price: 1938

Stop loss: 1908

Support: 1920.000/1910.000

Resistance: 1930.000/1938.000