Article by: ETO Markets
Gold prices (XAU/USD) continued to hover around the $2300 mark during Tuesday's Asian trading session. After last Friday's sharp decline triggered by optimistic U.S. economic data, the market has gradually stabilized. Investors are now waiting for this week's U.S. Consumer Inflation Data (CPI) and the Federal Open Market Committee (FOMC) decision to gain insights into the timing of potential interest rate cuts in the United States.
Additionally, the People's Bank of China (PBoC) significantly reduced its gold purchases in May, ending an 18-month buying spree and contributing to downward pressure on gold prices. On June 10, the United Nations Security Council voted to adopt a U.S.-submitted resolution related to the Gaza Strip, urging both Hamas and Israel to accept a ceasefire agreement. This development signals a potential easing of geopolitical tensions in the Middle East, which may also dampen demand for precious metals.
From the weekly chart, if gold prices break below the May low of $…, it would complete a double top pattern and initiate a formal downtrend. The April low of $… will provide support. Conversely, if prices rise, the 50-day Simple Moving Average (50-DMA) at $… will present new resistance for gold buyers.
