World Gold Review Tuesday, June 8
The upward trend in gold prices is reversing above $ 1,900 as cows in the US dollar market return to their bids amid deteriorating market conditions. After falling sharply on Monday following Janet Yellen's recent remarks, the US dollar is now trying to recover some of that loss.
Gold ended the North American trading session with an increase of about 0.4% and its price rose from $ 1881 to about $ 1900.19. At the time of writing, the XAU / USD has risen about $ 0.13 percent, from $ 1,899 to about $ 1902.
The dollar index (DXY) fell 0.21 percent to 89.946. The US Treasury 10-year benchmark was last seen at 1.569%, down from 1.628% on Friday.
From a technical point of view, the price has reached an area of horizontal resistance above the 10-day moving average. Proximity to the uptrend line in the daily timeframe is also a resistance that could limit the strong uptrend that continued on Monday.
The 4 and 20 hour moving averages are also bullish at this stage, while the 10-day moving average crosses the 20-EMA chart.
In contrast, in the hourly time frame, it is possible to correct the price to the previous resistance and cross the correction level of 38.2% Fibonacci and the moving average of 21 hours before the next move.
The main factor behind these moves could be increased optimism about coronavirus vaccination in the West and readiness to reduce the limitations caused by the epidemic. Also, according to data from the Federal Reserve Bank of St. Louis, the lowest level of inflation expectations in the last six weeks in the United States, in addition to lower unemployment, were other factors contributing to this trend.
