Gold price (XAU/USD) extends its consolidative price move above the $2,300 mark during the Asian session on Thursday as traders more cues about the Federal Reserve’s (Fed) rate-cut path before placing fresh directional bets. Hence, the focus will remain glued to key US macro data – the Advance Q1 GDP report due later today and the Personal Consumption Expenditures (PCE) Price Index on Friday. This will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the commodity.
In the meantime, the recent hawkish remarks by several Fed officials suggested that the central bank is in no rush to cut interest rates.Moreover, stronger US consumer inflation figures forced investors to scale back their expectations about the timing of the first rate cut to September and downsize the number of rate cuts in 2024. This keeps the US Treasury bond yields elevated and acts as a headwind for the non-yielding Gold price. Apart from this, easing concerns about a major escalation of the Middle East crisis continues to cap the safe-haven XAU/USD. Daily Digest Market Movers: Gold price struggles to gain traction amid hawkish Fed expectations
Technical Analysis: Gold price bears need to wait for acceptance below $2,300 before placing fresh betsFrom a technical perspective, the Gold price now seems to have found acceptance below the 23.6% Fibonacci retracement level of the February-April rally, albeit showing some resilience below the $2,300 mark earlier this week. Moreover, oscillators on the daily chart – though have been losing traction – are still holding in the positive territory. Hence, it will be prudent to wait for some follow-through selling below the $2,300-2,290 area, or over a two-week low touched on Tuesday, before positioning for an extension of the recent pullback from the all-time peak. The subsequent downfall has the potential to drag the XAU/USD to the $2,260-2,255 area, or the 38.2% Fibo. level, en route to the $2,225 intermediate support and the $2,200-2,190 confluence, comprising the 50% Fibo. level and the 50-day Simple Moving Average (SMA). On the flip side, immediate resistance is pegged near the $2,325 area ahead of the overnight swing high, the $2,337-2,338 zone. A sustained move beyond could allow the Gold price to test the next relevant hurdle near the $2,350-2,355 region and climb further towards the $2,380 supply zone. This is closely followed by the $2,400 round figure and the all-time peak, near the $2,431-2,432 area, which if cleared will set the stage for an extension of the recent blowout rally witnessed over the past two months or so.More By This Author:Japanese Yen Plummets To Fresh 34-Year Low Against USD, Around Mid-155.00s AUD/JPY Price Analysis: Bulls Steer The Market Towards 101.00, Its Highest Since 2014Canadian Dollar Recoils On Wednesday, Canada Retail Sales Disappoint