Spot gold bull run hits the brakes
The precious metal prices saw a slight retreat against the US Dollar but remained close to recent peaks, driven by safe-haven demand amid geopolitical risks.
However, prices have eased from record highs this week following robust US inflation and retail sales data, reducing expectations of a June Fed interest rate cut.
Fed Chair Jerome Powell's remarks further supported this view, emphasizing concerns about persistent inflation.
Powell stressed that recent inflation data hasn't convinced policymakers to ease credit soon.
He stated that a "lack of further progress" on inflation suggests the Fed is unlikely to cut interest rates at the upcoming meeting, indicating rates may stay higher for longer.
March's Consumer Price Index showed a 3.5% rise in consumer prices compared to the previous year.
Traders now expect only one or two rate cuts this year, a significant shift from earlier forecasts of six or more cuts.
From a technical perspective, the Relative Strength Index (RSI) 3-day 'lookback' indicator has broken down, suggesting a nearly bearish bias, while the Moving Average Convergence Divergence (MACD) is mixed.
Furthermore, the ADX (trend) indicator indicates a ranging market.
With increasing volatility, traders should reconsider critical levels and adjust strategies accordingly.
While a neutral stance persists, a potential downward move is considered from a break of $2,366, with a possible target at $2,320-24.
Further assessment should be conducted from that point onward.
Daily Chart Spot Gold
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