Gold prices remained steady at $2038/oz ahead of US Personal Consumption Expenditures (PCE) data, with expectations of a monthly loss due to a strong dollar and high Treasury yields. The market is keeping an eye on key resistance levels at $2055 and $2070.
Despite stabilization, gold futures are struggling to gain momentum and are on track for a 0.8% loss in February. In contrast, silver prices have continued to decline, preparing for a 2% monthly loss and a 6% loss since the beginning of the year 2024.
US economic data such as the GDP estimates, mortgage rates, and inventories have also influenced market movements. The main event for the week will be the release of the January PCE Price Index, with economists expecting increases that could impact gold prices.
US Treasury yields and the strength of the US dollar are additional factors affecting the gold market. Falling yields and a stronger dollar can be bearish for gold prices as they increase the opportunity cost of holding non-yielding assets.
Despite these challenges, the general trend for gold prices remains upward, with resistance levels at $2055 and $2070. Geopolitical tensions continue to support gold purchases, and buying on dips is still favored. The closest support levels for gold are at $2022, $2010, and $1995.
Overall, it’s essential for investors to be mindful of economic data releases and external factors influencing gold prices before making trading decisions.
