Gold Price Analysis: XAU/USD set to move lower in the near-term – OCBC

FXStreet Insights Team FXStreet

Gold fell back below the $1900 last week and a weak US CPI print this week may usher the yellow metal down further, as reported by OCBC Bank.

First positive inflows into gold ETFs last month

“Unsurprisingly, gold recorded its best monthly price gain YTD in May, rising 7.8% last month to close above $1900 on 31 May. The first few days of June, however, has been less encouraging, with gold falling back below the $1900 level.”

“Total known gold ETF holdings rose 1.58mil oz in May, the first positive inflow into this space in three months.”

“With breakeven yields staying stagnant, we continue to see gold as trading too rich and expect it to continue correcting this week.”

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FXStreet Insights Team

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EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.