Gold Price Steady at $2,638: Key Levels to Watch Ahead of U.S. Data
Gold prices hovered at $2,638 on Tuesday, reflecting cautious investor sentiment ahead of significant U.S. economic data releases.
These upcoming reports, including the Job Openings and Labor Turnover Survey (JOLTS), ADP employment figures, and Friday’s nonfarm payrolls, are likely to shed light on the Federal Reserve’s next policy moves.
Fed rate expectations are steering market dynamics. The likelihood of a 25-basis-point cut at the December 17-18 meeting has risen to 75%, driven by dovish remarks from Fed Governor Christopher Waller and New York Fed President John Williams. Waller’s comments, highlighting progress toward a 2% inflation target, reinforced market optimism. However, uncertainty about further easing measures in 2025 keeps traders vigilant.
Gold’s historical resilience during periods of low interest rates and geopolitical turmoil remains a focal point. With global tensions persisting, the precious metal continues to attract safe-haven demand.
Key Technical Levels for Gold Traders
Gold’s technical outlook shows the metal consolidating near its 50-EMA at $2,643. This indicator is pivotal for determining near-term momentum.
Resistance Levels: Immediate resistance is seen at $2,665, followed by $2,684. The next significant barrier lies at $2,710, where selling pressure is expected to intensify.
Support Levels: On the downside, $2,622 serves as the first line of defense. If breached, further declines toward $2,605 and $2,585 could materialize.
The Relative Strength Index (RSI) at 49 signals a neutral stance, with a slight bearish tilt. Traders should closely monitor price action near $2,622 for potential downside triggers or above $2,665 for a bullish breakout.
Fed Policy and Geopolitics: Driving Forces for Gold
Gold thrives in low-interest-rate environments, and the Fed’s potential shift toward a neutral stance in 2025 could bolster demand for the metal. Meanwhile, ongoing geopolitical unrest, such as the Israeli military’s recent targeting of Hezbollah positions in Lebanon, underscores gold’s role as a hedge against uncertainty.
Key Takeaways:
Gold is trading near $2,638, with the 50-EMA acting as a pivot point.
Critical resistance levels include $2,665 and $2,684, while immediate support rests at $2,622.
Upcoming U.S. economic data will heavily influence Fed rate cut expectations and, consequently, gold’s trajectory.
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