Bulls enhance the shine of spot gold - Attention turns to U.S. key data
Despite hawkish signals from U.S. Federal Reserve Governor Waller, emphasizing the need for higher interest rates and further inflation progress before considering a rate cut, precious metals experienced a sustainable upside surge on Wednesday.
Waller envisioned the beginning of an easing cycle in 2024 but highlighted the importance of consecutive months of inflation data nearing 2%.
Investors are eagerly awaiting the latest U.S. consumer spending data (GDP) before Friday's release of the Personal Consumption Expenditures Price Index (PCE), the Fed's preferred measure of inflation.
Markets will be closed for Good Friday.
Last week, the Federal Reserve reaffirmed its outlook for three rate cuts this year, consistent with comments from central bank officials.
Traders see a 70.4% chance of the Fed starting its easing cycle in June, with speculation about potential action at next week's upcoming meeting.
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
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.