By Bhvishya Patel, Money team

We spoke to three buskers to find out what it’s like performing on the street in the UK.

Amir, 29, came to UK from Pakistan with passion for music

Amir Hashmi moved to the UK in 2022 to study, said he began busking in central London 10 months ago because “music was his passion”.

“In Pakistan there are many problems so I decided to leave and move to London. I feel I can do better in London than my country,” he said.

He said busking was now his primary income but at times he did jobs at warehouses to get by.

“I never started this for money, I started because it is my passion but now this is my main job as well,” he said.

Amir, who often performs in the capital’s Piccadilly Circus or along Oxford Street, said often he returned home with just £10-15 in his pocket after a day’s busking.

He said: “Many times I sleep without food and sometimes I sleep on the floor of the road when I have no shelter.

“I don’t have my own place to live but I have friends who often let me stay with them. They don’t charge me any rent – they look after me.

“Sometimes I do private shows for income but it’s very hard because the cost of living is increasing. If I go somewhere then most of the time I prefer to walk. I walk with my speakers and carry my gear.”

Despite his financial struggles, Amir said he wanted to continue performing on the street as his “goal was to make people happy”.

He said: “With busking, there is no stage and you can just start performing. Whenever I am performing, I connect with the people who have come to listen. If I feel people are not enjoying it, I change the song and try and make them happy.”

Earlier this year, Amir recorded a song with Neha Nazneen Shakil, a Malayalam actress from India, who approached the singer three months ago in Oxford Street.

“I wrote that song 12 years ago and after all these years my song has been recorded now in London,” he added.

Jade, 24, quit retail to busk

Jade Thornton, from Amersham, started busking in 2017 with a friend after leaving college at the age of 17 and quickly realised it was something she enjoyed doing and could make a living from.

She began doing it full-time at the end of 2018 but when the pandemic hit she described becoming “unemployed overnight” and having to take up retail jobs to support herself.

“I chose not to go to university – I just thought it wasn’t for me so I went straight into some part-time retail jobs,” she said.

“I take my cap off to anyone who does retail – it is one of the most gruelling jobs. People who do retail don’t get nearly as much respect as they deserve. 

“Some of the customers I was facing were not that kind and I thought this is making me miserable, so I just thought ‘if I don’t leave now then when?'”

As the global economy slowly began to recover, she decided to leave retail and pursue music full-time in 2022.

“It is hard to switch off – I do busking but I am constantly messaging clients, writing set lists and learning songs,” she said.

When it came to finances, Jade said there was no average to how much she could earn but it could fluctuate from £15-100 day-to-day depending on a number of factors.

“It relies on the time of month, whether the sun is out, if people have been paid, if Christmas is on the way or if Christmas has just passed,” she explained.

The musician said she did struggle initially when she began busking but her parents were always supportive.

She said: “You obviously get a few questions from people asking ‘are you sure you want to quit your job and sing on the street?’

“I lived at home for a long time and I’m grateful my parents could support me in that way because I know not everyone has that opportunity.”

While performing outdoors is now Jade’s full-time job, she said some months were more difficult to make money than others.

“If I’m being brutally honest in months like January and February it would be super difficult. This year I had enough gigs in December to cover me for January,” she said.

“Last year from June-July and December I did not have to go busking because I got so many gigs through busking. I’m part of a lot of online agencies and I also do lots of pub gigs, weddings, birthdays and other events.”

Jade noted though that the cost of living crisis had made things harder.

She said: “A few pub gigs I’ve had have been cancelled because they’ve had to rethink their strategies but if somebody cancels then I can just go out busking. There has been a slight dent when it comes to finances but that’s from COVID as well – with COVID I was unemployed overnight.”

The young musician went on to say she was “very grateful” when somebody did tip her and even small gestures like sitting, listening or just a smile were “currencies in themselves”.

“It’s escapism for me as a singer and then it’s escapism for the audience as well,” she added.

“Children also have such a great time listening to buskers and some may not have an opportunity for many reasons to go and see live music so if they can come across it in the street and that can spark something that’s a wonderful thing to think I’m a little part of that.”

Charlotte, 34, long-time busker

Charlotte Campbell, 34, who usually busks along the Southbank or in the London Underground, said she started busking during the 2012 London Olympics and while “busking used to be enough”, more recently she has had to take on more gigs in the evening.

“A typical day is usually busking until around 6pm and then a gig in the evening – 8pm onwards,” she said.

“I could still probably make a living from busking but I’ve taken on more paid gigs since the pandemic because everything became so uncertain. I think that uncertainty has just carried through now – that seems to be the way of life now.”

The musician said tips for her CDs, which she puts on display during her performances, ranged between £5-10 and in the current cashless climate a card reader was “essential”.

She said she pre-sets her card reader to £3 when playing on the Southbank and £2 when busking inside the London Underground “because people are rushing”.

While she described her earnings as a “trade secret”, she said the busker income had “definitely gone down” but this was due to a few factors – the pandemic, people carrying less cash and the cost of living crisis.

“Also, a lots of pitches have closed which means there are a lot more buskers trying to compete for one spot so all of those things have impacted my living as a busker,” she said.

“I would say even though my income is primarily from busking I have had to subsidise it with more paid gigs than before. I just haven’t felt as secure in my living from busking in the last couple of years.

“Most of the gigs I have are booked by people who have seen me busking so indirectly busking is my entire career- if I don’t busk I wouldn’t get the gigs I play in the evening. So directly and indirectly busking is my entire income.”

In spite of uncertainty, she said it was freeing to be able to go out and perform for people in an intimate way.

“You are not up on a stage and there is no separation between you and them.  It’s a really great connection you can make – I want to be able to hold onto that,” she added.

Drop Below 2.31 Points to Retracement

A retracement is first indicated on a drop below today’s low of 2.31. Prior swing highs and lows then mark possible support levels starting with 2.23, which was a swing low in December. Then the level is a little lower at 2.21, followed by 2.18. This is the fourth consecutive week of positive performance for natural gas. Although the week is not over, it is currently trading near the highs of the day, and it is well on track to hit the 2.46 target zone. The 20-Day MA is a way lower at 2.04. It wouldn’t be surprising to see the 20-Day line tested as support if a retracement does come.

Key 2.46 Pivot Approached

Although the 2.46 price area is a key pivot, price action will leave clues as to what might be coming. Given the strength of the advance so far, might natural gas be able to breakout above the 200-Day line? Given the confluence of indicators highlighting a resistance zone from 2.37 to 2. 49, an upside breakout seems less likely, but it is possible. Or a brief consolidation and/or retracement could follow a test of the 200-Day line.

In this case, natural gas would be heading up towards the 61.8% Fibonacci retracement level. The 78.6% Fibonacci retracement follows. Also, a rise to test the top channel line could be in the works. If reached today the top channel line would match the 78.6% retracement level. Let’s watch the reaction of price upon approaching the 200-Day line for further insights.

For a look at all of today’s economic events, check out our economic calendar.

XAU/USD Current price: $2,383.39

• As expected, the United States Consumer Price Index rose 3.4% YoY in April.
• Persistently above-target inflation likely to maintain the Fed in the wait-and-see path.
• XAU/USD is bullish in the near term, could soon test the $2,400 mark.

Gold price reached a fresh three-week high above $2,380.00 on Wednesday and maintains the bullish stance in the mid-American session.  XAU/USD rallied following the release of the United States (US) Consumer Price Index (CPI) as inflation remained stubbornly high in April, according to the US Bureau of Labor Statistics (BLS).   The CPI rose 3.4% YoY in April from 3.5% in March,  meeting the market’s expectations, while the core annual reading printed at 3.6%, easing from the previous 3.8% but also in line with the market forecast. Finally, the monthly CPI rose 0.3%, slightly below the expected 0.4%.

Overall, the figures were not as terrible as feared, but enough to reaffirm the Federal Reserve’s (Fed) hawkish stance. The central bank has maintained the status quo since hiking rates to a range of 5.25% – 5.50% in July 2023 for much longer than initially anticipated. In fact, the Fed’s Summary of Economic Projections (SEP) suggested policymakers were aiming for three potential rate hikes when they met in December. March is gone, and at the time being, investors hope US policymakers will deliver at least one rate cut in November.

What happened? Well, inflation remained above the central bank’s goal, while the labor market remained tight. Fed Chairman Jerome Powell lifted the tone and ended up delivering clearly hawkish messages. In such a scenario, speculative interest is eager to see softening inflation figures, precisely the opposite of what was seen throughout the first quarter of the year. As a result, investors drop the US Dollar.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows bulls are in control, although a firmer rally remains unclear. Technical indicators advance within positive levels with uneven strength, yet at the same time, they stand at fresh multi-week highs, somehow supporting a bullish continuation. Furthermore, XAU/USD finally ran above a flat 20 Simple Moving Average, which provided near-term support at around $2,335 earlier in the week. Finally, the 100 and 200 SMAs accelerated their advances far below the current level, reflecting renewed buying interest.

The near-term picture is bullish. Technical indicators in the 4-hour chart head firmly south, with the Relative Strength Index (RSI) indicator entering overbought territory without signs of giving up. Furthermore, the pair bounced sharply from a bullish 20 SMA, which gained upward traction above the also bullish 100 and 200 SMAs. XAU/USD could reach the $2,400 mark in the upcoming sessions despite widespread signs of risk appetite.

Support levels: 2,378.10 2,361.35 2,345.20

Resistance levels: 2,392.50, 2,403.10 2,417.60 

XAU/USD Current price: $2,383.39

• As expected, the United States Consumer Price Index rose 3.4% YoY in April.
• Persistently above-target inflation likely to maintain the Fed in the wait-and-see path.
• XAU/USD is bullish in the near term, could soon test the $2,400 mark.

Gold price reached a fresh three-week high above $2,380.00 on Wednesday and maintains the bullish stance in the mid-American session.  XAU/USD rallied following the release of the United States (US) Consumer Price Index (CPI) as inflation remained stubbornly high in April, according to the US Bureau of Labor Statistics (BLS).   The CPI rose 3.4% YoY in April from 3.5% in March,  meeting the market’s expectations, while the core annual reading printed at 3.6%, easing from the previous 3.8% but also in line with the market forecast. Finally, the monthly CPI rose 0.3%, slightly below the expected 0.4%.

Overall, the figures were not as terrible as feared, but enough to reaffirm the Federal Reserve’s (Fed) hawkish stance. The central bank has maintained the status quo since hiking rates to a range of 5.25% – 5.50% in July 2023 for much longer than initially anticipated. In fact, the Fed’s Summary of Economic Projections (SEP) suggested policymakers were aiming for three potential rate hikes when they met in December. March is gone, and at the time being, investors hope US policymakers will deliver at least one rate cut in November.

What happened? Well, inflation remained above the central bank’s goal, while the labor market remained tight. Fed Chairman Jerome Powell lifted the tone and ended up delivering clearly hawkish messages. In such a scenario, speculative interest is eager to see softening inflation figures, precisely the opposite of what was seen throughout the first quarter of the year. As a result, investors drop the US Dollar.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows bulls are in control, although a firmer rally remains unclear. Technical indicators advance within positive levels with uneven strength, yet at the same time, they stand at fresh multi-week highs, somehow supporting a bullish continuation. Furthermore, XAU/USD finally ran above a flat 20 Simple Moving Average, which provided near-term support at around $2,335 earlier in the week. Finally, the 100 and 200 SMAs accelerated their advances far below the current level, reflecting renewed buying interest.

The near-term picture is bullish. Technical indicators in the 4-hour chart head firmly south, with the Relative Strength Index (RSI) indicator entering overbought territory without signs of giving up. Furthermore, the pair bounced sharply from a bullish 20 SMA, which gained upward traction above the also bullish 100 and 200 SMAs. XAU/USD could reach the $2,400 mark in the upcoming sessions despite widespread signs of risk appetite.

Support levels: 2,378.10 2,361.35 2,345.20

Resistance levels: 2,392.50, 2,403.10 2,417.60 

Aerial view of a ship at sea.

Suriyapong Thongsawang | Moment | Getty Images

U.S. crude oil held firm on Wednesday after domestic stockpiles declined more than expected.

In the U.S., commercial crude oil inventories, which exclude the strategic petroleum reserve, fell by 2.5 million barrels last week, according to data released by the Energy Information Administration. This is compared to the 543,000 barrel draw expected in a Reuters poll of analysts.

Gold (XAU/USD) is currently trading at $2356.69, down 0.06%. The pivot point is $2351.87. Immediate resistance levels are at $2379.06, $2398.70, and $2417.77, suggesting potential upward targets. On the downside, immediate support levels are at $2334.83, $2322.77, and $2307.12.

Technical indicators show mixed signals. The 50-day Exponential Moving Average (EMA) stands at $2337.36, while the 200-day EMA is at $2302.87. Gold has completed a 61.8% Fibonacci retracement at the $2335 area and bounced off this support level to reach $2356.

A bullish breakout above $2362 could push gold towards the $2379 mark. However, a break below $2350 might trigger a sharp selling trend.

Copper prices have topped US$10,000 per tonne for the second time in a fortnight but analysts including Goldman Sachs are predicting that there’s still a long way to go.

Goldman’s latest forecast is for the red metal to reach US$12,000/t by the end of 2024 and then US$15,000/t in 2025.

The last time copper went into five figures was in March 2022, when the Russian attack on Ukraine began and there were fears of supply disruption.

The metal topped out at US$10,845/t at that time.

Back then, the force behind copper’s price was geopolitical risk; this time it is the looming and widening supply-demand deficits that have caught traders’ attention and led Goldman to predict “demand rationing” because demand is in runaway mode, but few new mines are in offing.

Copper supplies stall

In its most recent client note, Goldmans says copper demand has “scarcely gathered momentum”.

It sees a deficit of 454,000t this year and 467,000t in 2025.

Copper, essential for electricity and everything that depends on electricity because of its conductivity powers, is the building block of economic growth.

Yet — while the world hurtles to an electric future and Net Zero 2050 — mine output has failed to keep pace.

Between 2019 and 2023, global mining output has been struck in the 20 to 22Mt range.

Predictions for demand over the next 10 to 20 years vary but they all have one thing in common: they are much, much higher than today’s output.

Mines in trouble

The International Copper Association forecasts that by 2040 the world will be consuming 40.9Mt of copper per annum.

The World Bureau of Metal Statistics sees a 2030 global deficit of 6Mtpa — equivalent to 27% of 2023’s global mine output of copper.

Last year the Panamanian government forced the closure of the Cobre copper mine, owned by First Quantum Minerals, after protests about the mine causing environmental damage.

That took 400,000tpa out of production, representing 1.8% of global supply.

There is now a glimmer of hope after last weekend’s elections in Panama, with incoming president Jose Raul Mulino noted for being pro-business and pro-mining.

But a mine re-opening would require Panama’s Congress to agree and last year that body voted heavily for the closure.

Ecuador licence suspended

Meanwhile, a court in Quito last week suspended the environmental licence for the US$3 billion Llurimagua copper-molybdenum mine located just 75 kilometres north-west of the Ecuadorian capital.

The planned mine is located in a tropical rainforest area and mining has been opposed by the local people.

The published resource for one deposit within Llurimagua is 982Mt at 0.89% copper.

Chile’s Codelco, along with the Ecuador’s state mining company, were to develop the operation.

Elsewhere in South America, Anglo-American has slashed output forecasts for 2025 from its two copper mines in Chile by 200,000t.

South American disruptions

Declining grades, along with labour disruptions, are hampering South American copper output.

Chile and Peru are the world’s top copper producing countries.

They are followed by the Democratic Republic of Congo and China — and China has established a significant presence in the DRC’s copper mining sector.

DRC’s copper output has reached 3Mtpa, most of which is shipped to China.

Meanwhile China Minmetals last year paid US$1.87 billion to buy the Khoemacau copper mine in Botswana’s Kalahari copper belt from its Canadian owner, putting its foot on annual outputs of 60,000t of copper and 1.67 million ounces of silver.

Electrification plans under threat

Without sufficient copper supplies, a clean energy future is threatened.

Not only does the outlook seem bleak for copper supplies, but the very process of electrification has implications for copper.

According to Frank Holmes, chief executive officer of San Antonio-based fund US Global Investors, total world spending on energy transition in 2023 came in at US$1.8 trillion, double that for 2020 outlays.

Vice chair (energy) for Wood Mackenzie Ed Crooks says construction of a wind farm uses three times as much copper per gigawatt than does the construction of a coal-fired plant.

An upper-end elective vehicle typically requires 78kg of copper compared with a large petrol-driven sedan using 22kg.

Copper investment lag

It takes, on average, at least 10 years from prospecting for copper to first production.

Buying the copper producer is much easier — hence BHP Group (ASX: BHP) is seeking to buy Anglo American (and presumably sell off much of Anglo’s non-copper inventory) — but the number of pure play copper mines is very small.

And there are many hungry buyers: Minmetals managed to buy its Botswana mine only after years of scouting for copper acquisitions.

Tom Stevenson of US-owned investment house Fidelity International says that, between 2012 and 2020 capital, spending in the copper industry fell by more than 40%.

“Copper production, like that of all commodities, is highly cyclical,” he argues.

“To make it worth the cost, the environmental challenges and the long and risky time-scales, the price needs to rise from here.”

The World Platinum Investment Council (WPIC) has released its latest platinum market report, adjusting its 2024 deficit projection up to 476,000 ounces as weaker supply is outpaced by sustained auto and industrial demand.

“For the second consecutive year, the platinum market will post a meaningful deficit underscored by platinum’s sustained demand and supply vulnerability amidst global economic challenges,” said WPIC CEO Trevor Raymond.

“While we currently forecast a deficit of 476 koz, it is worth mentioning that a revision to the bar and coin investment series, based on new field research and information, could mean this deficit is potentially deeper,” he added.

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Total platinum supply in the first quarter was the second lowest in the WPIC’s time series at at 1,625,000 ounces, with the full-year number also expected to be near a record low. The market deficit for the quarter came in at 369,000 ounces.

Despite efforts to bolster supply, risks remain a prominent theme in 2024. Total mine supply is forecast to decrease by 3 percent year-on-year, driven by lower output from key producing regions such as South Africa and Russia.

More specifically, restructuring and impending closure announcements in the South African region have had a major impact in maintaining operational flexibility, according to Edward Sterck, the WPIC’s director of research.

“In the past, if a mining company happened to hit a geological interruption, they might have been able to move the work elsewhere. Going forward, the flexibility to be able to do that is probably reduced,” he told the Investing News Network.

Refined production in South Africa is expected to decline by 2 percent year-on-year due to announced restructuring plans, closures of shafts/sections and slower production ramp ups than previously anticipated.

Similarly, Russian supply is projected to be affected by planned smelter maintenance throughout 2024. In North America, headcount reductions are anticipated to impede the return of production to pre-2020 levels.

Recycling also contributes to platinum supply, and while it showed some improvement in Q1 compared to the fourth quarter of 2023, it remains historically weak. The WPIC reported better jewelry recycling, primarily driven by the liquidation of platinum jewelry stocks, but said weakness persists in automotive recycling and the electronics sector.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

200-Day Line at 2.46 is Next Target

The next target zone is the 200-Day MA at 2.46. It is strengthened by the 50% retracement, which marks the same price. Natural gas is well on its way to that target, and it continues to have a good chance of being reached before resistance stops the ascent, possibly leading to a pullback. Further, the 50-Week MA (not shown) is slightly above the 200-Day line at 2.49. If the completion of the measured move at today’s high doesn’t end the ascent, a 2.46 to 2.48 target zone should be next on the agenda.

First Approach to 200-Day Line Could See Strong Resistance

It is common for price to be rejected from a long-term moving average the first time it is approached after being away from it for a while. Following the January 25 internal swing high natural gas dropped below the 200-Day line and accelerated to the downside.

The current rally is the first attempt since then to test the 200-Day line as resistance. However, if natural gas manages to break through the 200-Day line and the 50-Week line, and then stays above them, it would next be heading towards the 61.8% Fibonacci retracement at 2.68. Depending on when reached, the upper declining blue dashed channel line may have an impact as the channel line and 61.8% level may be near each other.

Near-term Support at 2.31

If instead of continuing to ascend, today’s high leads to a retracement, the first sign of it would be on a drop below today’s low of 2.31. The prior swing low and 38.2% retracement at 2.24 would the be the next lower possible support zone. Other price levels will be looked at in the future if the pullback scenario unfolds.

For a look at all of today’s economic events, check out our economic calendar.

XAU/USD Current price: $2,351.39

• United States wholesale inflation was hotter than expected in April.
• Federal Reserve Chair Jerome Powell smashed the odds for a soon-to-come rate cut.
• XAU/USD timidly advances, the bullish momentum is still missing.

Spot Gold advanced towards the $2,350 region mid-Tuesday, ticking north on the US DollarDollar’sess. XAU/USD picked at $2,356.96 following the release of the United States (US) Producer Price Index (PPI) data. The figures indicated inflationary pressures persist, as the monthly PPI rose 0.5% in April, up from -0.1% in March and above the 0.3% expected. Furthermore, it rose 2.2% YoY, while the core annual reading was 2.4%, unchanged from March. The overall figures were not really worrisome, as they stand just above the desired 2% inflation level, but the monthly uptick spurred concerns as it suggests the increase at wholesale levels will soon show in consumers.

The US will release the April Consumer Price Index (CPI) report on Wednesday. Although the Federal Reserve (Fed) bases its monetary policy decision on a different inflation measure, any deviation will likely trigger action across the FX board.

Meanwhile, US indexes struggle to overcome the bad news. The Dow Jones Industrial Average and the S&P500 are stuck around their opening levels, while the Nasdaq Composite is roughly 40 points up. Stocks’ behavior suggests market players are not particularly worried about the figures, while the absence of such concerns limits demand for safe-haven gold.

Fed Chairman Jerome Powell spoke at a moderated discussion with De Nederlandsche Bank (DNB) President Klaas Knot at the Foreign Bankers’ Association’s General Meeting in Amsterdam and delivered quite a hawkish message. Powell said the economy has been performing well due to a very strong labor market. He also noted the labour market continues to rebalance but remains strong, adding policymakers need to be “patient” on “inflation. “Confidence in inflation moving back down is lower than it was. My confidence in that is not as high as it was before,” Powell said, smashing hopes for a soon-to-come rate cut.

XAU/USD short-term technical outlook

The daily XAU/USD pair chart shows buyers timidly adding longs. The pair holds above the 23.6% Fibonacci retracement of the April/May rally at $2,326.50, a relevant support level. Furthermore, it finds buyers for a second consecutive day around a mildly bearish 20 Simple Moving Average (SMA), while the longer ones maintain their bullish slopes far below the current level. Finally, technical indicators turned higher within positive levels, although with limited upward strength.

In the near term, and according to the 4-hour chart, XAU/USD is neutral to bullish. Gold is seesawing around a bullish 20 SMA while the 100 and 200 SMAs converge just below the aforementioned Fibonacci level. Technical indicators, in the meantime, have turned higher, although the Momentum indicator remains below its 100 line, limiting the odds of a firmer advance.

Support levels: 2,326.50 2,310.40 2,298.70

Resistance levels: 2,356.90 2,367.10 2,381.40

XAU/USD Current price: $2,351.39

• United States wholesale inflation was hotter than expected in April.
• Federal Reserve Chair Jerome Powell smashed the odds for a soon-to-come rate cut.
• XAU/USD timidly advances, the bullish momentum is still missing.

Spot Gold advanced towards the $2,350 region mid-Tuesday, ticking north on the US DollarDollar’sess. XAU/USD picked at $2,356.96 following the release of the United States (US) Producer Price Index (PPI) data. The figures indicated inflationary pressures persist, as the monthly PPI rose 0.5% in April, up from -0.1% in March and above the 0.3% expected. Furthermore, it rose 2.2% YoY, while the core annual reading was 2.4%, unchanged from March. The overall figures were not really worrisome, as they stand just above the desired 2% inflation level, but the monthly uptick spurred concerns as it suggests the increase at wholesale levels will soon show in consumers.

The US will release the April Consumer Price Index (CPI) report on Wednesday. Although the Federal Reserve (Fed) bases its monetary policy decision on a different inflation measure, any deviation will likely trigger action across the FX board.

Meanwhile, US indexes struggle to overcome the bad news. The Dow Jones Industrial Average and the S&P500 are stuck around their opening levels, while the Nasdaq Composite is roughly 40 points up. Stocks’ behavior suggests market players are not particularly worried about the figures, while the absence of such concerns limits demand for safe-haven gold.

Fed Chairman Jerome Powell spoke at a moderated discussion with De Nederlandsche Bank (DNB) President Klaas Knot at the Foreign Bankers’ Association’s General Meeting in Amsterdam and delivered quite a hawkish message. Powell said the economy has been performing well due to a very strong labor market. He also noted the labour market continues to rebalance but remains strong, adding policymakers need to be “patient” on “inflation. “Confidence in inflation moving back down is lower than it was. My confidence in that is not as high as it was before,” Powell said, smashing hopes for a soon-to-come rate cut.

XAU/USD short-term technical outlook

The daily XAU/USD pair chart shows buyers timidly adding longs. The pair holds above the 23.6% Fibonacci retracement of the April/May rally at $2,326.50, a relevant support level. Furthermore, it finds buyers for a second consecutive day around a mildly bearish 20 Simple Moving Average (SMA), while the longer ones maintain their bullish slopes far below the current level. Finally, technical indicators turned higher within positive levels, although with limited upward strength.

In the near term, and according to the 4-hour chart, XAU/USD is neutral to bullish. Gold is seesawing around a bullish 20 SMA while the 100 and 200 SMAs converge just below the aforementioned Fibonacci level. Technical indicators, in the meantime, have turned higher, although the Momentum indicator remains below its 100 line, limiting the odds of a firmer advance.

Support levels: 2,326.50 2,310.40 2,298.70

Resistance levels: 2,356.90 2,367.10 2,381.40