#Gold Testing Support Near Term Bounce Expected

Gold is testing lower levels of support as market participants aim to price in a potential rate hike in June by the Federal Reserve.

While intraday price action is oversold, the daily chart is indicating further selling could continue to below $1,230. If a close below this key level occurs, traders can expect XAUUSD to reach $1,215.

Subscribers of MacroView's "Daily Grind" were alerted of the potential of a $30+ drop as seen here.

Key factors to watch:

• The four-hour chart z-score is -2.4 (daily z-score is -2.57). This suggests that prices are stretched and a score +/- 2 makes a great contrarian indicator.
  

• Intraday RSI and Stochastic are both suggesting oversold conditions.
  

• Multiple EMA bearish convergence, currently a 50/200 EMA bearish crossover is probable.
  

MacroView expects to see demand between $1,215/20. It's important to keep and eye on the short end of the yield curve. With a relatively strong negative correlation with the two and five year yield maturity, if those continue to rise, we could see more pressure on the yellow metal.

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