Gold Remains Bullish as Markets Continue to Overlook Civil Crisis in America

A strong reversal in today’s risk sentiment in the European session gave Gold futures a positive outlook as the markets appeared to be unaffected by the social unrest in the US and placed its focus instead on news that China will continue buying soybeans from the US.

As noted by analysts, the only factor that appears to be stifling further gains on Gold is the brewing US-China tensions. Not the civil unrest across the US. Not the probability of 20% of small businesses in the US crashing forever. Not even the increasing number of COVID-19 cases in the US and across the globe.

In the stock market, traders do not seem to care about every negative news or data as long as the Fed keeps injecting liquidity and the strife between Beijing and Washington DC does not escalate to further tariffs and sanctions.

Today’s economic data calendar is void of events and price action is likely to be influenced by the happenings on the streets of US cities. So far, the protests over the death of George Floyd by the Minneapolis police have only gotten more violent against property and while this has caused significant economic damage, the financial markets have overlooked the developments. However, if President Trump goes ahead with his desire to call-up a martial law and this causes more human casualties, then the markets will no longer be able to overlook the crisis in America.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — June 2

XAU/USD Major Bias: Bullish

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

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

Gold (XAU/USD) has entered a sideways momentum for the time being but remains bullish above $1,730. At press time, Gold is trading at $1,744, just under the first resistance. With the brewing crisis in America weighing heavily on the USD, it seems very unlikely that Gold will remain below $1,745 for long or drop to the pivot or previous support levels.

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