Gold Begins June On a Positive Note

Gold Begins June On a Positive Note

The price of Gold (XAU/USD) remains steady above the $1,730-35 levels with an intraday high of $1,744.69 in the Asian session. The bullion is benefiting from the current risk-off sentiment by investors as tension escalates between the United States and China. The yellow metal is also benefiting from the increasing protests across the US.

Despite President Trump’s unwillingness to place additional sanctions on China, many fear that the relations between the two economic powerhouses will continue to crumble. A Chinese publication explained that groups calling for more “fighting spirit” dominate those calling for cooperation and dialogue.

However, the US Secretary of State, Mike Pompeo, condemned the ruling Chinese party in an interview with Fox, adding that the party’s military advances should not be ignored.

Meanwhile, the protests across the United States have taken precedence for the economic outlook of this week.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — June 1

XAU/USD Major Bias: Bullish

Supply Levels: $1,745, $1,754, and $1,763

Demand Levels: $1,730, $1,722, and $1,717

XAU/USD continues in line with our projection for last week. Gold is currently witnessing a slight pullback from the recent high ($1,744) to the $1,730 pivot line. This pivot line poses strong support for gold and will likely facilitate a bounce towards the $1,754 level (May 20 high) and higher. On the flip side, if gold bulls fail to defend this line, the pullback could continue to $1,722. However, gold is likely to rally for the most of this week as the US dollar might not fare well given the current state of crisis in America.

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