Fundamental Descriptions: Gold was down on Wednesday morning , with inflation's uncertain path giving the yellow metal a uncertainity. The buying momentum around Gold Price extended on Tuesday, as bulls cinched fresh two-week highs at $1870. The US dollar tumbled alongside the yields, extending its downward correction despite a cautious market mood, led by a tech sell-off on the global markets. Weak US Manufacturing PMI for May also added to the dollar’s misery, benefiting XAUUSD.
Technical View: In doing so, the bright metal gained for the fifth straight trading day, continuing its recovery from four-month troughs of $1787. After the relentless surge, gold bulls could see a minor pullback from two-week highs, with the immediate support of the 21-DMA likely to be tested.
Alternate View: A break below the last could expose the next downside target of $1,850, below which the mildly bullish 200-DMA at $1,839 will challenge the bullish traders.
Technical View: In doing so, the bright metal gained for the fifth straight trading day, continuing its recovery from four-month troughs of $1787. After the relentless surge, gold bulls could see a minor pullback from two-week highs, with the immediate support of the 21-DMA likely to be tested.
Alternate View: A break below the last could expose the next downside target of $1,850, below which the mildly bullish 200-DMA at $1,839 will challenge the bullish traders.