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Gold: China News Creates Perfect Pullback for Dip-Buyers

Published 06/10/2024, 09:33 AM
XAU/USD
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GC
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Hey traders,

I hope you had a wonderful weekend.

As expected, the ECB cut rates last week, but the market remained mostly sideways as everyone awaited the US Non-Farm Payrolls report. The report showed very strong figures, leading to a strong reversal to the upside for the US dollar, accompanied by a rise in US yields, despite a higher unemployment rate. So, the stock market was still able to stabilize on Friday, also due to the personal income data (HOURLY EARNINGS), which slightly increased by 0.4%.More importantly, gold experienced a strong decline following news that China did not buy any gold in May. While this sounds bearish, it’s worth noting that China did not buy at the highs, suggesting potential better entry points for them now here, after this retracement. We are observing an interesting retracement in gold, with wave four returning to the former wave four 2270 support, as shown on the chart below. Could we see a new bounce? Well, the timing should be interesting, as we expect the release of US inflation data on Wednesday, and the Fed will announce its latest decision regarding interest rates.XAUUSD D

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