XAUUSD, Daily
Today is Memorial Day, or Veterans Memorial Day, in the US (it always falls on the final Monday in May), additionally it is a holiday in the UK too so market volumes have been low in both the Asian and European sessions today.
The US Dollar strengthened earlier compared to other major currencies, which also lowered the gold price by nearly 10.00 USD during the Asian market, even though trade tensions between the United States and China are heating up. There were significant protests in Hong Kong last weekend, due to the new Chinese security legislation that seeks increased control over Hong Kong.
However, the main issue that the market is still keeping an eye on is the coronavirus and the effect of the easing of lockdown measures. Will they help the economic recovery or will they cause a second wave outbreak?
From a technical perspective, in the Daily time frame, the gold price made a new high 91 month high last week. It started to see the conflict between the price and the MACD until the pattern of bearish divergence with the swing up in the narrow frame. The main resistance is at the number $1750, which may have to keep an eye on the movement of the stock market.
Due to declining economic numbers this week the overall picture may focus on trade tensions between the United States and China, alongside Covid-19 updates that may or may not reinforce last week’s good news about a vaccine.
Click here to see the economic calendar.
Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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