The gold price forecasts a rise in the US session and confirms a slightly stronger US Dollar, holding gold bulls at bay in the European session. Comments from Fed policymakers on rate cuts continue to weigh on the Greenback, while geopolitical tension around the Middle East looks to further intensify.
US data lies ahead with a key print being the US PCE data due on Friday, which may have a significant impact on US rate expectations before the year is out.
Technically, Gold seems to be showing a trend of limited upside in the near future, and there may be a retracement, characterized by resistance levels around $2050 and $2078.
The sentiment of the retail traders indicates that 60% of them are having long positions on Gold (XAU/USD).
It’s important to keep a close eye on the latest US Data and other economic releases as they could impact market dynamics in the short term.
Geopolitical tensions remain a key factor in the Middle East, which adds uncertainty to the markets and further supports the case for why Gold could continue to be a sought-after safe haven.
Gold prices have again found a strong footing in the US session, rising back above resistance levels at $2040/oz, with a slightly stronger US Dollar kept Gold bulls at bay in the European session. Ongoing comments from Fed policymakers on rate cuts continue to weigh on the Greenback.
Looking forward, US data lies ahead with a key print being the US PCE data due on Friday, which may have a significant impact on US rate expectations before the year is out, indicating the possibility of a steady rise in the Gold prices.
The renewed US Dollar weakness has also assisted Gold to continue holding the high ground and its advance. Policymaker comments only offered push backs like Policymaker Barkin saying that he thinks inflation is more stubborn than the average Fed official. This can be transformation for Gold’s future in the coming sessions.
With geopolitical tensions increasing in the Red Sea and around the Middle East, the uncertainty and strife may intensify, which gives Gold the upper hand, and we can expect more gains. The US Treasury Yields continued their struggles today with both the 2Y and 10Y yield benefiting gold.
“From a technical perspective, Gold is interesting following the recent selloff which stopped last week as Gold printed an indecisive candle close. This should have given us a sign that we may get further upside this week which has come to fruition but further upside in my opinion appears limited.” This indicates that a retracement may come into play soon with a host of resistance areas between the $2050 and $2078 handles which may prove to be a hurdle.
Although the sentiment of the retail traders: 60% of them holding Long positions on Gold, is overall a bullish indicator, it might result in a struggle to put in more gains going forward. Therefore, careful monitoring of retail sentiment is required.
Moreover, Gold is a crucial market to look at as the demand for it is bound to increase in the coming days, altering the associated sentiment of the market. Hence, looking at different factors might turn out to be rewarding for an individual investor in order to make a wise decision.
