Gold Remains in a Consolidation Range Despite Bolstering Factors


Gold (XAU/USD) has steadied on its intraday positive momentum through the early European session and was last spotted trading around the $1,730 pivot.

The yellow metal has caught some fresh buy bids after it bounced off ascending trend-line support. This rise was largely supported by the renewed Coronavirus jitters.

Investors are worried over how a rise in new Coronavirus cases has taken precedence over previous prospects for V-shaped global economy recovery. This has turned out to be one of the major factors underpinning demand for gold.

The intraday positive momentum of gold seemed to be unchanged by the strong recovery in the global equities markets. The risk-on bias was bolstered by an uptick in the US Treasury bond yields which did not affect the yellow metal.

Meanwhile, a beaten-down US dollar price action had no iota of influence on the dollar-denominated commodity. Some follow-through buying bid above the $1,730 pivot has been spotted and will most likely send the yellow metal towards the $1,745 resistance as it ascends towards multi-year highs.

Considering that there are no market-moving economic data from the US today, traders will be looking to Fed Chair Jerome Powell’s comments at a meeting for clues in the US session.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — June 19

XAU/USD Major Bias: Sideways

Supply Levels: $1,735, $1,745, and $1,753

Demand Levels: $1,717, $1,710, and $1,705

Gold remains in a strong consolidation range despite several price-boosting factors. At this point, only a break above the $1,745 resistance will solidify any further gains in the near-term. Meanwhile, the prospects for a sustained decline below $1,700 are becoming increasingly invalid.

Note: is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.