Current trend

The XAU/USD pair continues its upward trend, holding at 2340.0, and is correcting ahead of the US Fed meeting on June 12.

Investors are assessing statistics from the labor market: according to the JOLTs report, the number of open vacancies has renewed its low since spring 2021, amounting to 8.059M vacancies, and the forecast for job growth in the non-farm sector suggests a decrease from 192.0K to 173.0K. Negative dynamics in the labor market are a consequence of tight monetary policy, and the longer interest rates remain at peak levels, the more the economy will slow down, allowing precious metals to strengthen their positions even more. Thus, according to the Chicago Mercantile Exchange (CME) FedWatch Instrument, the probability of a decrease in the cost of borrowing at the meeting on June 12 is 0.0%, and on July 31 – 16.5%. The highest indicator of 55.3% refers to September 18, so gold has at least three months to continue the trend.

Support and resistance

On the daily chart, the trading instrument is correcting within the channel with dynamic boundaries of 2520.0–2320.0.

Technical indicators do not give a clear signal: fast EMA on the Alligator indicator are close to the signal line, and the AO histogram forms correction bars close to the transition level.

Resistance levels: 2365.0, 2430.0.

Support levels: 2315.0, 2240.0.

Trading tips

Long positions may be opened after the price rises and consolidates above 2365.0, with the target at 2430.0. Stop loss — 2340.0. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 2315.0, with the target at 2240.0. Stop loss — 2340.0.