Jakarta, GIC Trade – Gold prices edged higher on Monday as protracted discussions around the U.S. debt ceiling and less hawkish comments from Federal Reserve Chairman Jerome Powell added to the safe-haven bullion's appeal.
 
"Concerns over the debt ceiling remain a key pillar of support for gold prices, with $2,000 providing a stepping stone for buyers who fell on Friday as talks rolled for the next week," said Matt Simpson, senior market analyst at City Index.
 
Gold fluctuated around $1,975 an ounce on Monday, struggling for direction as traders cautiously awaited an update from the U.S. debt limit negotiations, while continuing to assess the Federal Reserve's monetary policy outlook. 
 
U.S. President Joe Biden and House Speaker Kevin McCarthy will resume discussions on Monday, as Treasury Secretary Janet Yellen has repeatedly warned that the U.S. could default on its debt as early as June 1 if an agreement to raise the U.S. debt ceiling is not reached. 
 
Meanwhile, Fed Chair Jerome Powell said that inflation was "well above" the central bank's goal, but added that there may not be a need to raise interest rates further due to pressures in the banking sector. 
 
Market participants now value the more than 85% chance that the Fed will pause interest rate hikes next month.
 
Fundamentally, concerns related to the US debt ceiling and less hawkish comments from Federal Reserve Chairman Jerome Powell made gold's appeal even more intense, so prices moved up. Then how technically, see the following analysis:
 
Technical Analysis

 
Gold prices in the 30-minute period tried to move up, touching the resistance area of 1987.00 until heading to the next resistance level at 1995.00. While the bullish bias is also supported by a buy signal indicated by a green arrow.
 
This analysis is a fundamental and technical view used by the author, not a suggestion or invitation. To get more information click on the image below.