The volatility of gold has been in terminal decline. The price of precious metals kept bouncing on either side of $2000 during the trading sessions. Markets are positioning themselves for the release of fresh data that will impact investor sentiment. Traders and investors alike are waiting for US GDP data and PCE (Personal Consumption Expenditure) data to be released. The value of the US dollar is stabilizing as investors turn to this familiar safe haven in times of uncertainty.
Treasury bonds that were sliding earlier in the week are now stabilizing while the benchmark 10 year bond remains under 3.5%.
Real Yields that peaked at 1.36% last week are now languishing near 1.26%.
Kiwi dollar reclaimed territory at 0.6140 while the rest of G10 currencies stayed subdued.
Wall Street seems to be moving towards a positive trend with Meta stocks rising to an unprecedented high. APAC equities markets, however, remained subdued.
The announcement by Deutsche Bank that it had missed the estimates for the first quarter had an adverse impact on the markets. The Bank reported revenue of 2.36 billion euros, which fell short of the earlier estimate of 2.53 billion euros.
Technical Analysis of Gold Prices
Gold is in an ascending trend channel between the 1934 – 2049 range for the last six weeks.
Simple Moving Averages indicate a lack of short-term direction as gold price clusters around the 10 and 21 day mark.
Notable support and resistance on both sides of the levels are preventing a breakout from the range.
Gold formed a double top with two peaks being 2075 in April 2020 and 2070 in March 2022. Gold consistently finds support at the 1885-1895 mark. These two lines define the 100 days SMA for gold.
