Gold’s attempts at a rally has repeatedly faltered with geopolitics having limited impact absent any actual shooting among major powers. Hope’s that an easing cycle would provide a further lift has also been dashed as the Fed continue to sound hawkish bucking the trend among other central banks. Absent anything new to ignite demand we would note how prices remain within the vicinity of historic highs and looking very much in need of some position squaring.
Resistance
- 2368.72 – June 21 Lower High
- 2355.05 – Intraday Consolidation Low
- 2339.83 – Friday’s High
Support
- 2319.28 – Intraday Consolidation Low
- 2309.64 – Intraday Consolidation Low
- 2294.17 – Daily Triangle Support Line
We still have a valid head and shoulder pattern breakout for XAUUSD in the big picture, though the past three weeks has seen a triangle forming. Within that context Friday saw a tight spinning top underscoring an inability to hold on to gains. At this point bias for us remains to be selling XAUUSD with an engulfing candle break of 2319.28 as an entry. We would also be equally interested to look at shorts given long hourly wicks coming from 2339.83. Buys may be taken of 2294.17 the triangle support line though tight stops below last weeks lows must be in-place.
