Gold prices have experienced a modest increase since the non-farm payroll (NFP) low at the beginning of the month, but the overall downtrend remains unbroken. Following the all-time high of $2,450, prices have been trending downward in a choppy manner, characterized by lower lows and lower highs, culminating in the recent low on Friday, June 7th (NFP).

Since then, there has been a slight recovery, with prices rising above $2,320, but the momentum is weak, as evidenced by the narrowing pattern. If the blue 50-day moving average (DMA) holds as resistance, gold may continue to follow the medium-term downtrend and move lower.

Currently, gold drivers are lacking. There have been no significant escalations in conflicts in eastern Europe or the Middle East, and US economic data has not created a favorable environment for rate cuts. On the downside, gold bears will be watching the swing low at $2,287, which could trigger a more substantial decline if breached.

Gold Prices Show Little Movement as Short and Medium-Term Trends Clash

Jun 19 2024

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