Spot gold bulls rejoin the market as geopolitical risks reignite safe-haven demand
The precious metal prices reject the downside challenge as renewed safe-haven demand returns on geopolitical risks and reclaims the $2,400 handle.
Hawkish comments and Fed chair Powell's indication of no imminent rate cuts sparked speculation, unsettling the market and leading to expectations of rate cuts in September and December.
Talk of a single cut in November has also emerged.
Thursday's Fed comments echoed reluctance, with NY Fed President Williams highlighting a strong economy and Atlanta Fed President Bostic advocating patience, citing sluggish inflation.
From a technical standpoint, the Relative Strength Index (RSI) 3-day 'lookback' indicator has rebounded, suggesting some strength.
However, the Moving Average Convergence Divergence (MACD) remains mixed. The ADX (trend) indicator indicates a ranging market.
With rising volatility, traders should reassess critical levels and adapt strategies accordingly.
While a neutral stance prevails, even though the $2,366 challenge was rejected, there's potential for a downward move.
Further assessment is warranted if this level is contested.
Daily Chart Spot Gold
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