Gold forecast for June 8, 2021: rebound to the resistance line

Gold forecast for June 8, 2021: rebound to the resistance line

At first, the gold rate retreated slightly during yesterday’s trading, but turned back and again showed signs of stability. Players expect the CPI data to be released later this week as inflation is a serious issue. The $ 1.900 area has proven its strength over and over, so it will be difficult to overcome this obstacle. If gold manages to break through this barrier, it will face a major upward movement.

Market activity is still volatile despite general bullish sentiment. Christopher Lewis expects buyers to continue to show interest in the precious metal during downturns over time, while the $ 1,850 level will provide support. In addition, the attention of traders will be attracted by the fact that the 50-day moving average is moving towards this mark. The uptrend line is also ready to enter the game.

All things being equal, between now and Thursday the gold rate is likely to move mainly sideways, but with an upward bias given the current price action. Selling short can be delayed until the precious metal falls below the 200-day EMA, which is just above the $ 1,800 level. Conditions will remain challenging, but overall they will be conducive to growth.

As noted by David Becker, on Monday the rate of gold rose, as the dollar fell and bond yields fell. Friday’s disappointing US employment report put pressure on the US currency and provided gold a way up. The precious metal is trading in the middle of the upward range, the lower border of which is the uptrend line near the $ 1.865 mark.

daily chart of gold per ounce in US dollars

While gold rallied, it ran into target resistance around the 10-day moving average at $ 1.896. The 10-day EMA crossed the 50-day, indicating a short-term trend. The short-term momentum turns positive as the fast stochastic generates a cross-buy signal. Medium-term momentum turned negative as the Moving Average Convergence / Divergence (MACD) index generated a sell cross.

Fed hints at cut in procurement program

The US Federal Reserve intends to move to prepare markets to cut its $ 120 billion per month asset-buying program aimed at bolstering the economy. Over the past weeks, at least five Federal Reserve officials have shared their thoughts on the likelihood of such discussions.

Posted by Christopher Lewis & David Becker Jun 7, 2021 | Translation: Gold Reserve

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