Gold’s price in USD struggles to build on its recent two-day gains, fluctuating within a tight range in Wednesday’s Asian trading session. The US Dollar marginally recovers, offsetting some of its steep decline to the lowest point since September 1. Meanwhile, the positive sentiment in equity markets poses challenges for GOLD , traditionally a safe-haven asset.
Expectations that the Federal Reserve may halt interest rate hikes are capping significant gains in the USD, indirectly supporting gold prices. This scenario hints at a potential upward trajectory for gold, following its rebound from the 200-day Simple Moving Average near $1,930—its lowest since October 18.
Tuesday’s US CPI data release, showing stagnation in October and a two-year low annual increase, strengthens beliefs that the Fed’s tightening cycle might be over. This speculation spurred a sharp fall in US Treasury bond yields overnight, keeping the dollar near its September lows and offering support to gold.
Even though people are generally more willing to take risks, which is lowering demand for GOLD , the fundamental picture looks good for investors who want to see the precious metal go up. Recent Chinese economic data, including higher-than-expected industrial production and retail sales growth, had a limited market impact.
Market focus now shifts to the US Producer Price Index and Retail Sales data, set for release in the early North American session. The PPI is expected to show a modest rise, while Retail Sales may indicate a contraction, offering fresh cues for short-term trading.
GOLD prices, having closed above the 1962.35 level, lean on this support to start the day with positive trades. This trend bolsters prospects for further intraday gains, eyeing the 1975.00 resistance level. A breach of this threshold could signal a return to the main bullish trend, potentially leading to a target of $2,000.00.
Therefore, a bullish outlook is favored in the short term, with the caveat that a dip below 1962.35 could reverse the anticipated ascent.Today’s expected trading range lies between the 1950.00 support and the 1980.00 resistance level, with the trend predicted to be bullish.