The price of Gold bounced around $30 up and down today, after the US GDP report, but buyers seem unwilling to push XAU in any direction. The situation is uncertain in the Middle East, with Iran-Israel tensions abating while the fighting in Gaza has increased, so Gold traders are staying on the sidelines for now.

Gold Chart H1 – Bouncing Between 2 MAs

The jump after the GDP report was significant, with the price up by around $30, reaching a new daily high at $2344.89. But, the price couldn’t move above the 100-hour moving average, which is seen as a resistance indicator now. The next significant tactical goal is the 200-hour moving average, which stands at $2360.

It’s worth noting that in the second week of April, Gold reached an all-time high of $2431.78, indicating the strength of its upward momentum. Despite a corrective low to $2,290 earlier in the week, which barely surpassed the 50% midway point of the advance from March 18, buyers have shown interest in entering the market at this level, suggesting underlying bullish sentiment.

But Gold’s upward momentum is facing some challenges as investors await further clarity on the Federal Reserve’s monetary policy stance. The upcoming release of the PCE Price Index, a key inflation gauge closely monitored by the Fed, could provide important insights into the central bank’s future actions.

Depending on how the data aligns with market expectations, it could impact the direction of the US dollar and consequently affect gold prices. Investors will likely scrutinize the PCE data for any signs of inflationary pressure, which could influence their perceptions of the Fed’s policy trajectory and, in turn, gold’s appeal as a hedge against inflation.

Gold Live Chart