Spot gold bulls exit as bears regain control of the market
On Friday, precious metal prices experienced volatility, with a significant pullback after reaching an intraday record high of $2,416 (previously $2,428).
Prices eventually settled above the key support area at $2,360-66.
Meanwhile, the U.S. Dollar Index (U.S. DXY) remains near five-month highs at 106.10.
Looking ahead, two critical reports on the U.S. economic calendar could induce market volatility: the first-quarter GDP report on Thursday and the Personal Consumption Expenditure (PCE) report on Friday, the U.S. Federal Reserve's preferred measure of inflation.
Strong retail sales and inflation readings suggest these reports may surpass consensus estimates.
Q1 GDP is anticipated at 2.1%, slightly slower than the previous quarter but still potentially inflationary.
From a technical standpoint, the Relative Strength Index (RSI) 3-day 'lookback' indicator rebound has failed, indicating a potential return to weaker play at the start of this week.
However, the Moving Average Convergence Divergence (MACD) remains mixed, and the ADX (trend) indicator suggests a ranging market.
With high volatility, traders should reassess critical levels and adapt strategies accordingly.
While a neutral stance prevails, there's potential for a downward move despite last week's rejection of the $2,360-66 challenge.
Further assessment is warranted if this level is contested.
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.