The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InAmid surprising resilience in the U.S. economy that has bolstered the dollar, gold is facing intense selling pressure that has pushed prices to test fateful technical levels. According to reports, gold broke below a key support zone held for over five weeks, leading to an acceleration in the current decline. XAU/USD is now testing its yearly opening price, a pivotal technical level that could determine the price direction in the medium term, driven by strong U.S. economic data and shifting monetary policy expectations.
This decline comes at a time when economic data showed significant outperformance, with the U.S. ISM Manufacturing PMI recording 54, exceeding expectations of 53 according to market data released on June 1, 2026. Compared to other precious metals, silver (XAG/USD) saw similar declines due to dollar strength, while the Dollar Index stabilized near multi-month highs following Fed Chair Jerome Powell's speech in late May, which reinforced expectations that rates will remain higher for longer.
Traders are currently monitoring support levels at gold's yearly open, with the price settling at $2,295.40 (close June 5, 2026). Looking at the economic calendar, markets are awaiting Korean inflation data tomorrow and further speeches from Federal Reserve officials to gauge the likelihood of a continued downtrend. A break below the yearly open could open the door for further correction toward subsequent psychological support levels.