XAUUSD: Break Above $1900 Seems To Back Soon!

XAUUSD: Break Above $1900 Seems To Back Soon!

XAUUSD: Break Above $1900 Seems To Back Soon!

After the non-farm payrolls failed to meet the expectations, the depreciation on dollar assets brought along an upward movement on the Ounce Gold side. While non-farm employment remained below expectations with 559 thousand people in May, average hourly earnings came in above expectations with 0.5 percent on a monthly basis. In the USA, the unemployment rate data for May decreased by 5.8 percent compared to the previous month. However, it is seen that the precious metal, which stretched the 1875 level due to dollar assets, which priced the weakness in the non-farm employment outlook, accelerated its attacks against the 1900 resistance again. On the other hand, the continuing decline in weekly unemployment benefits indicates that the labor market has improved in the US economy. In particular, the decline in the US 10-year bond yields below 1.6 percent stands out as an important factor supporting the rise in the precious metals side.

On the other hand, the US Treasury Secretary Yellen's statement that the rising inflation in the USA caused high interest rates was among the remarkable statements. Although this development gave some momentum to the dollar side, we followed a voluminous course on the first trading day of the week due to the fact that the US markets were quite calm in terms of data flow.

While the dollar is settling above the 1895 level with the weakening dollar in the technical image of ounce gold, the rises may enter into a rally towards the 1915 and 1935 resistance thresholds, depending on the persistence of the commodity in pricing above this level. However, in case of a possible easing potential, we continue to follow the 1875 threshold as the first stop, and below this level, we continue to follow the 1855 and 1836 support levels gradually.

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