Gold Struggles Below $1,860 – Prepare for a Correction

During the Asian session, GOLD is trading at $1,853, halting an uptrend beneath the $1,860 resistance level. As bulls gather pace for the next push higher, the gold price is trying to build on the last advance above $1,850. As investors become more cautious and rush to safety in the US Dollar, the brilliant metal is failing to find new demand.

Meanwhile, US Treasury bond yields remain near weekly lows, barring any downside for gold investors. The US dollar fell sharply on Wednesday as mixed US ISM Manufacturing PMI data and US Federal Reserve (Fed) Minutes disappointed.

Even though the Fed Minutes revealed that officials are dedicated to battling inflation and expect higher interest rates to remain in place, markets continue to price in a dovish Fed pivot by the end of 2023 as recession chances increase. Now, the focus is on US employment data, which will give us more information about the Fed’s policy path this year.

The GOLD price keeps going up, and a new bullish channel appears on the chart to show this. Stochastic loses its negative momentum bit by bit, waiting for the price to start going up again. The next goal is $1,900. As a result, our bullish outlook will remain valid and active until $1,820.50 is broken and held below.

Today’s trading range is expected to be between $1,840 support and $1,875 resistance.

Today’s expected trend: bullish