Gold Price Forecast: XAU/USD attracts some sellers below $2,350, eyes on Eurozone political concerns

FXStreet
Updated Jun 17, 2024 01:35
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Source: DepositPhotos

■  Gold price edges lower to $2,325 in Monday’s early Asian session. 

■  The hawkish Fed continues to underpin the Greenback and drag USD-denominated Gold lower. 

■  The Eurozone political concerns might boost the safe-haven flows and cap the downside for yellow metal. 


Gold price (XAU/USD) trades on a softer note near $2,325 during the early Asian trading hours on Monday. The speculation that US interest rates will stay higher for longer, with the median projection from Federal Reserve (Fed) officials calling for one interest rate cut this year, has lifted the Greenback broadly. However, the risk aversion fueled by political uncertainty in Europe might boost the safe-haven flows and cap the downside for yellow metal. 

On Friday, Cleveland Fed President Loretta Mester said that she would like to see good-looking inflation data, adding that the path towards the Fed's 2.0% inflation goal may take longer than expected. Meanwhile, Minneapolis Fed President Neel Kashkari stated on Sunday that it is a “reasonable prediction” that the central bank will wait until December to cut interest rates. Kashkari added that the Fed is in a very good position to get more data before making any decisions. The hawkish comments from the Fed officials weigh on the non-yielding assets like Gold as it makes the white precious metal more expensive for overseas buyers. 

Consumer sentiment fell to a seven-month low in June, according to the preliminary report for the Michigan Consumer Sentiment Index on Friday. The Consumer Sentiment Index dropped 3.5 points to 65.6 in June from May's final reading of 69.1. The figure came in weaker than the estimation of 72.0. Additionally, the one-year inflation expectation held steady at 3.3%, and the five-year inflation outlook rose to 3.1% from 3%. 

On the other hand, the downside for yellow metal might be limited amid the Eurozone political concerns. France's President Emmanuel Macron called for early parliamentary elections after losing to the right-wing National Rally in the European vote. On Sunday, Macron said that Economic programs by two extremist blocks in the parliament election are not realistic, and France is at a very serious moment with major economic issues at stake. Any negative development surrounding the Eurozone or France's political concerns could provide some support to the safe-haven assets like Gold. 


XAU/USD


Overview
Today last price 2332.83
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 2332.83
 
Trends
Daily SMA20 2345.22
Daily SMA50 2345.06
Daily SMA100 2226.43
Daily SMA200 2101.96
 
Levels
Previous Daily High 2336.71
Previous Daily Low 2301.64
Previous Weekly High 2341.68
Previous Weekly Low 2287.81
Previous Monthly High 2450.1
Previous Monthly Low 2277.31
Daily Fibonacci 38.2% 2323.31
Daily Fibonacci 61.8% 2315.04
Daily Pivot Point S1 2310.74
Daily Pivot Point S2 2288.66
Daily Pivot Point S3 2275.67
Daily Pivot Point R1 2345.81
Daily Pivot Point R2 2358.8
Daily Pivot Point R3 2380.88

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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