Bullish momentum in spot gold stalls as focus shifts to critical U.S. inflation data
The price of precious metals saw a strong upside attempt, ending flat at the New York close due to anticipation of key signals on U.S. inflation and Federal Reserve decisions.
Recent strength in the dollar also contributed to market caution.
Traders are expected to adopt a "wait and see" approach, closely monitoring the Fed's policy decisions, particularly with upcoming inflation data, GDP figures, and the Core PCE index.
These updates are critical, especially with U.S. markets closed for the Good Friday holiday.
Despite recent reports of elevated inflation, the Fed anticipates a longer-term cooling trend.
Traders speculate the Fed may start cutting its main interest rate as early as June, with some even eyeing the upcoming meeting next week for such action.
Additionally, investors can anticipate further remarks from Fed Chairman Jerome Powell, likely drawing significant attention.
Based on technical analysis, the Relative Strength Index (RSI) 3-day 'lookback' indicator is mixed.
The Moving Average Convergence Divergence (MACD) is weak, and the ADX indicator supports a ranging market.
Traders should continue to exercise caution after last week's "bearish spinning top" pattern, suggesting possible volatility and weakness.
Following the overnight’s failed upside attempt, market participants may look for potential downside pressure, which could reach the area of $2,142-48, but a rebound towards $2,200-14 is also feasible.
Traders should stay vigilant and adapt strategies accordingly to their risk management.
Daily Chart Spot Gold
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