Gold Faces Decline Amidst Anticipation of US Jobs Data Impact.
FUNDAMENTAL OVERVIEW:
Gold prices remained under pressure, hovering around $2,020 per ounce on Wednesday, following a two-session decline. Investor caution prevails as the market awaits a crucial US monthly jobs report, expected to provide insights into the future path of Federal Reserve monetary policy.
Last week, Federal Reserve Chair Jerome Powell remarked that current monetary settings are “well into restrictive territory.” However, Powell cautioned against premature expectations of policy easing. Similarly, European Central Bank board member Isabel Schnabel indicated that further rate hikes might be off the table due to a “remarkable” decrease in inflation. She emphasized the need for policymakers to avoid guiding for steady rates through mid-2024.
In a separate development, Moody’s downgraded China’s outlook from “stable” to “negative,” citing increased risks tied to sustained lower medium-term economic growth and the ongoing downsizing of the property sector. These factors contribute to the complex global market landscape.
Technical Overview for Gold:
Moving Averages:
- Exponential:
- MA 10: 2025.24 (Positive Crossover – Bullish)
- MA 20: 2008.01 (Positive Crossover – Bullish)
- MA 50: 1974.94 (Positive Crossover – Bullish)
- Simple:
- MA 10: 2028.30 (Positive Crossover – Bullish)
- MA 20: 1998.72 (Positive Crossover – Bullish)
- MA 50: 1954.00 (Positive Crossover – Bullish)
Other Indicators:
- RSI (Relative Strength Index): 59.60 (Neutral Zone – Neutral)
- Stochastic Oscillator: 36.37 (Neutral Zone – Neutral)
Resistance and Support Levels:
- Resistance: R1 – 2049, R2 – 2072
- Support: S1 – 2006, S2 – 1948
Overall Sentiment: Bullish
Market Direction: Buy
Trade Suggestion:
- Limit Buy: 2049
- Take Profit: 2072
- Stop Loss: 2042