Gold Eyes Modest Gains Amid Geopolitical Tensions, Awaits Key US Economic Data
During Tuesday’s early Asian trading session, GOLD (XAU/USD) experienced a slight increase, surpassing the $2,050 level, currently trading at $2,055 with a gain of 0.06%. The uptick is influenced by escalating geopolitical tensions in the Red Sea, enhancing gold’s appeal as a safe-haven asset.
Concurrently, the US Dollar Index (DXY) maintains its early-year steadiness near 102.60, while 10-year Treasury yields have decreased to 3.95%.
Markets anticipate a Federal Reserve rate cut by March, with predictions for a total easing of approximately 166 basis points in 2024. Contrarily, Atlanta Fed President Raphael Bostic advocates maintaining current rates until summer to control inflation, emphasizing the risks of premature policy easing.
Moreover, recent missile strikes by Houthi rebels on US vessels near Yemen have intensified the geopolitical uncertainty, potentially bolstering gold’s standing as a refuge during turbulent times.
Investors are closely watching developments in the Middle East and upcoming US economic data, including the NY Empire State Manufacturing Index and a speech by Fed’s Waller.
Gold Technical Outlook
Gold’s technical outlook suggests a holding pattern, with the price fluctuating between the key resistance at 2065.70 and support at 2037.50. This situation warrants a neutral stance until a breakout occurs.
A breach of resistance could reverse the bearish correction, propelling GOLD towards targets of 2100.00 and potentially 2144.60. Conversely, breaking support could lead to a downward correction towards 2016.90 and possibly 1977.46.
Today’s expected trading range lies between 2030.00 support and 2070.00 resistance, with a neutral trend anticipated.
Gold XAU Live Chart
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