Gold Rebounds Amidst Directionless US Dollar
The price of gold remains volatile following Monday's rebound, while the U.S. Dollar Index (U.S. DXY) held steady at 105.10 in the New York session.
With minimal economic data forthcoming, the focus shifts to remarks from Federal Reserve officials.
Richmond Fed President Barkin expects current interest rates to stabilize the economy, targeting the 2% inflation goal.
Conversely, New York Fed President Williams leans towards a positive outlook on monetary policy, suggesting potential future rate cuts.
Speculation on rate cuts gains momentum after a disappointing April jobs report, with the U.S. economy adding 175,000 jobs, below the forecasted 250,000.
Despite the rebound, technical indicators show a mild upward bias in the Relative Strength Index (RSI), negativity in the Moving Average Convergence Divergence (MACD), and a ranging market in the Average Directional Index (ADX).
While a modest bounce occurred, further assessment is needed at current levels, as bearish sentiment is expected to resurface, potentially targeting around $2,278 and further down to $2,254-58.
Renewed upward movements are likely to encounter resistance.
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.