The stocks indices placed modest profits after a sell-off on Thursday and Friday.
- Dow Jones Industrial Average climbed 95 points (+0.4%) to 25585
- S&P 500 added 3 points (+0.1%) to 2826
- Nasdaq Composite was up 8 points (+0.1%) to 7637.
The U.S. official data revealed that durable goods orders (preliminary estimate) diminished 2.1% on month in April (vs. -2.0% expected, +1.7% in March).
The U.S. 10-year Treasury yield surged to 2.327% from its new 2019 low of 2.296%.
Crude Oil recovered around 5% losses marked Thursday and rebounded 1.2% to $58.63 a barrel while Brent was up 1.4% to $68.69 a barrel.
Gold Supported Over Risk-off Sentiment – Technical Outlook
On Monday, gold prices surged amid anxieties the Sino-U.S. trade war had begun to take its toll on the U.S. economy, undermining the dollar and growing expectations of a U.S. Federal Reserve interest rate cut.
Gold prices were supported on the 20 Days EMA as bulls line up for a test towards the channel resistance. Stochastics continue to lean bullish.
Bulls can target the 61.8% Fibo at 1290 ahead of 1297 as the trend line resistance. 1303 is recent swing fractal high. A pair of significant retracement zones surround gold. (Click the arrowed square for full-screen chart)
On the lower side, the support area is $1272.70 to $1253.00. On the upside, the resistance area is $1299.80 to $1325.90. This region is controlling the longer-term direction of gold.
Support and Resistance
Key Trading Level: 1280.62
Gold – XAU/USD – Trade Tips
Consider staying bullish over 1,283 as the market is very likely to continue bullish trend above this level. The target is expected to target 1,289 and 1,293. All the best!