Gold (XAU/USD) slipped below $3,300 in Monday’s session after stronger-than-expected U.S. jobs data pushed the dollar higher, weakening the case for near-term Fed rate cuts. May’s Nonfarm Payrolls came in at 139,000, beating forecasts of 130,000, while unemployment held steady at 4.2%. This reinforced expectations for the Fed to maintain interest rates, limiting gold’s upside due to its non-yielding nature.
Still, looming U.S.-China trade talks in London may support safe-haven demand if tensions escalate.
Gold Technical Outlook
- Resistance: $3,400
- Support: $3,230 neckline, then $3,200 and $3,150
- A break below $3,200 could spark deeper declines. For bullish momentum to resume, gold must reclaim $3,430. The RSI remains neutral, showing no clear trend dominance.
Silver (XAG/USD), by contrast, broke decisively above $35 following a drop in the gold-to-silver ratio from resistance at 102.50. Silver had consolidated between $31.70–$33.60 and now shows strong upside potential.
Silver Technical Outlook
- Support: $35 (recent breakout level)
- RSI: Overbought, suggesting a possible short-term correction before continuation higher
- Failed breakdowns around $31.80 and successful breakout above $33.60 indicate growing bullish momentum.
US Dollar Index (DXY) Outlook
- The dollar index remains under pressure despite rebounding off the 98.00 support.
- Support: 98.00
- Resistance: 100.50
- A clean break below 98.00 could trigger a decline toward 96.00, boosting gold and silver further.
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