Despite the US Durables outperforming expectations, the price of gold has successfully rebounded from $1,930.00 and currently sits at $1,926.96.

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• Gold price has shown a confident recovery from $1,930.00 despite US Durables having outperformed consensus.

The pair currently trades last at 1926.96.

The previous day high was 1933.39 while the previous day low was 1920.8. The daily 38.2% Fib levels comes at 1928.58, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1925.61, expected to provide support.

Gold price (XAU/USD) has displayed a recovery move from $1,920.00 in the early New York session. The precious metal has attracted significant bets despite the United States Durable Goods Orders data (May) having landed better than expectations.

US Census Bureau has reported that Durable Goods Orders have expanded by 1.7% while the street was anticipating a contraction of 1%. May’s Durables data has outperformed April’s figure of 1.2%. Durables data excluding defense orders have expanded by 3.0% against expectations of a stagnant performance. This indicates that demand for consumer durables was resilient and conveys that core inflation could turn out persistent further.

Upbeat US Durables data has propelled chances of one more interest rate hike by the Federal Reserve (Fed) for its July meeting. As per the CME Fedwatch tool, around 77% chances are in favor of a 25 basis point (bp) interest rate hike from the Fed for the July meeting.

Meanwhile, S&P500 futures have surrendered half of their gains amid a cautious market mood. The upcoming quarterly result season has kept investors on their toes.

The US Dollar Index (DXY) has extended its downside to near 102.40 despite fears of more interest rate hikes from the Fed. Fed chair Jerome Powell has confirmed that the central bank will continue tightening monetary policy but at a ‘careful pace’.

Gold price is attempting an upside break of the Symmetrical Triangle chart pattern formed on an hourly scale. An upside break will trigger an explosion in the volatility contraction, which will result in wider ticks and heavy volume.

The precious metal is trading below the 200-period Exponential Moving Average (EMA) at $1,934.50, which indicates that the long-term trend is bearish.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, portraying a lackluster performance.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1926.27 at the time of writing. Pair opened at 1923.31 and is trading with a change of 0.15 % .

The pair is trading below its 20 Daily moving average @ 1948.84, below its 50 Daily moving average @ 1975.88 , below its 100 Daily moving average @ 1942.76 and above its 200 Daily moving average @ 1854.61

The previous day high was 1933.39 while the previous day low was 1920.8. The daily 38.2% Fib levels comes at 1928.58, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1925.61, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1918.28, 1913.24, 1905.69
• Pivot resistance is noted at 1930.87, 1938.42, 1943.46

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