Gold (XAU) Daily News: Market Awaits Powell’s Speech – Can Gold Sustain Above $2,480?

Gold prices (XAU/USD) are showing signs of recovery after halting a downward trend, with prices climbing to $2,492.85 and reaching an intraday high of $2,495.81.

This upward movement is largely driven by a weakening US dollar, as expectations of a dovish stance from the Federal Reserve prompt selling pressure on the USD. The anticipation of potential interest rate cuts at the Fed’s September meeting is further supporting gold prices, as a lower dollar typically makes gold more attractive to investors.

Impact of Fed Rate Cut Expectations on Gold Prices

The broader market sentiment remains bullish on gold due to the growing expectation that the Federal Reserve will begin lowering interest rates. The recent rise in US Treasury bond yields offered brief support to the dollar, but this was insufficient to sustain its strength, as many investors now anticipate a rate-cutting cycle to begin soon. This has helped to limit losses for gold, keeping it well-supported in the market.

Economic data from the US also plays a crucial role in this dynamic. The US Department of Labor reported that Initial Jobless Claims rose to 232,000, slightly higher than the previous week’s 228,000. Moreover, revisions to employment figures revealed that US employers added 818,000 fewer jobs than initially reported for the year through March. These developments have further fueled speculation of an impending rate cut, which is favorable for gold prices.

Geopolitical Tensions Continue to Support Gold

Ongoing geopolitical tensions also contribute to gold’s appeal as a safe-haven asset. The uncertainties surrounding global political stability have bolstered gold’s position as a preferred investment during times of risk and market volatility. As these tensions persist, gold prices are likely to remain well-supported, with investors seeking refuge in the metal.

Technical Outlook and Trading Strategy

Gold is currently trading at $2,492.85, reflecting a modest gain of 0.33%. The pivot point at $2,503.37 is a critical level to watch, as a break above it could signal further upward movement toward the $2,520.98 resistance level.

GOLD Price Chart - Source: Tradingview

On the downside, key support is found at $2,475.81, with additional support levels at $2,450.95 and $2,432.88. The Relative Strength Index (RSI) stands at 48, indicating neutral momentum, while the 50-day Exponential Moving Average (EMA) at $2,485.74 offers underlying support.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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