- Gold price corrects from near fresh 2024 highs of $2,142 reached on Tuesday.
- Dollar recovers with Treasury yields, as all eyes remain on Powell’s testimony, US jobs data.
- Gold price risks a correction on less dovish Powell, overbought RSI conditions.
Gold price is once again attempting a corrective stint, replicating the price action for the third straight session in Wednesday’s Asian trading. The recent surge in price has been driven by expectations of aggressive interest rate cuts from the US Federal Reserve, fueled by soft economic data from the United States.
The pause in the downtrend of the US Dollar and Treasury bond yields has led to a brief pullback in Gold price from its recent high, with investors closely watching Fed Chair Jerome Powell’s testimony and upcoming US jobs data for further direction.
Gold price awaits Powell and US jobs data
Recent soft economic data from the US has raised concerns about a ‘soft-landing’, prompting expectations of Fed rate cuts. The next move in Gold price hinges on Powell’s testimony and data releases, with markets closely monitoring the situation.
Gold price technical analysis: Daily chart
On the technical front, Gold price is consolidating recent gains, with the RSI indicating overbought conditions. A corrective downside move may be on the horizon, with key support levels to watch for.
Gold FAQs
Gold has historical significance as a store of value and a safe-haven asset, making it a popular investment choice during turbulent times.
Central banks are major holders of Gold, using it to diversify reserves and strengthen the economy and currency.
Gold is inversely correlated with the US Dollar and Treasuries, often rising when these assets weaken.
Gold’s price movements are influenced by various factors, including geopolitical instability and interest rates.
Insight: The recent correction in Gold price is a result of the US Dollar and Treasury bond yields staging a recovery, causing a brief pullback from the recent highs. Investors are closely monitoring Jerome Powell’s testimony and upcoming US jobs data for further clarity on the Fed’s stance and potential rate cuts. The technical analysis suggests overbought conditions, indicating a possible corrective downside move with key support levels to watch. In addition, the historical significance of Gold as a safe-haven asset and its inverse correlation with major assets make it a key asset to watch during times of uncertainty and market volatility.
