Precious metals, including gold and silver, have declined over the last two sessions. In today’s European session, prices extended losses after a gap-down opening.
Gold and silver came under pressure as the US dollar strengthened and oil prices moved higher, while traders remain cautious ahead of key central bank decisions, especially the upcoming FOMC meeting. Stable real yields and firm USD positioning have limited upside in bullion.
During the session:
traded near $4604.66 per ounce
traded near $4618.39 per ounce
This marks a three-week low, reflecting ongoing bearish sentiment in the short term.
Market View:
Despite the recent decline, there is a possibility of profit booking before the US market opens, which may trigger a short term trend reversal. Traders holding sell positions can consider locking in profits, while fresh buying opportunities may emerge at lower levels.
Intraday Strategy:
Buy Gold Spot (XAUUSD): $4595 – $4605
Buy Gold June Futures: $4609 – $4619
Stop Loss: As per risk management
Targets:
Gold Spot XAUUSD:
TGT1: $4702
TGT2: $4712
TGT3: $4722
Gold June Futures:
TGT1: $4717
TGT2: $4727
TGT3: $4737
Conclusion:
With prices at multi week lows and volatility high due to macro factors, a short term bounce driven by profit booking is possible. Traders should stay alert, book profits on sell positions, and look for buying opportunities at lower levels to capture potential upside.
