Gold price stays subdued around $2,370 amid a strong US dollar, showing a lack of sustained selling pressure.
FUNDAMENTAL OVERVIEW:
During the early European session on Tuesday, some sellers were drawn to the gold price (XAU/USD), causing it to reverse a significant portion of the overnight rebound from the $2,325-2,324 range, which marked a multi-day low.
During the early hours of the European session on Tuesday, the gold price (XAU/USD) saw some selling activity, leading to a significant reversal of the overnight gains from the $2,325-2,324 range, which marked a multi-day low. Concurrently, the US Dollar (USD) continues its recent upward trend, reaching its highest level since November. This surge is driven by expectations that the Federal Reserve (Fed) will postpone interest rate cuts due to persistent inflation and a robust US economy. Consequently, this development adds pressure on the US Dollar-denominated commodity, although a notable corrective decline remains elusive.
Investors retain apprehension regarding the potential for increased geopolitical tensions in the Middle East, particularly following Iran’s recent assault on Israel. Furthermore, anticipation that the Federal Reserve will maintain elevated interest rates for an extended period moderates investors’ inclination towards riskier assets. This sentiment manifests in a generally subdued atmosphere across equity markets, likely bolstering demand for the safe-haven Gold. Attention now shifts to upcoming US macroeconomic data releases and speeches by key FOMC members, including Fed Chair Jerome Powell, for potential short-term trading prospects.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Gold is trading within an up channel.
Gold is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 2387.72
Immediate support level: 2364.34
HOW TO TRADE GOLD
Gold maintains its upward trajectory, supported by a series of higher highs. Although currently exhibiting bullish sentiment, it has paused its ascent and is retracing toward a key support level. Sustaining above this support zone could pave the way for further gains. Presently, Gold indicates a buying opportunity on dips.