In Asian markets on Friday morning, gold showed strong performance after opening this morning, up 0.18% at $ 1,780 an ounce after falling 0.2% last week. According to a recent observation, we see that the trend of gold prices has continued to decline after the statement of the President of the US Federal Reserve, Powell, who decided to keep interest rates. The US Federal Reserve will consider reducing bond purchases and forecast to double interest rates by 2023. Obviously, if we consider in depth the decision of the US Federal Reserve, it may not seem surprising, but what is surprising is the strength of this policy.

At the same time, the US FOMC has recently been committed to supporting the US economy in a number of areas that have been severely affected. Caused by the global epidemic crisis, COVID-19 in the United States has shown signs of improvement in almost every sector through data such as GDP data, including employment data, while unemployment has fallen. These data put pressure on gold prices to fall.

Not only that, but there is also some data that makes the price of gold fluctuate, such as:

Unemployment change applicant data drops from 415k to 364k.

Purchasing Managers’ Index (PMI) data fell from 61.2 to 60.6.

CB consumer confident increased from 120 to 127.

ADP Non-Farm release 692k more than expected.

For this week, the market is paying attention to data on non-farm payrolls (NFP) data and unemployment rates, which have had a significant impact on the gold price market and will be released on Friday night It is expected to increase from 559K to 725k in June.

By observing the gold price chart this week, we see that the price of gold fluctuates between $ 1785 per ounce to $ 1750 per ounce, so I would recommend trading gold if in Today, the price of gold does not break from 1766 to 1768, we can buy and set stop loss at 1761 to 1763 and set take profit at 1775, 1780 and 1785.

Analyzed by: Ms. Oeurn Kimgech, Independent Analyst