Spot Gold Experiences Profit-Taking Round
Spot Gold Experiences Profit-Taking Round
Spot Gold faced profit-taking as the U.S. Dollar Index (DXY) rebounded from 100.40 to 100.80.
With a busy week of economic data ahead, investors are focused on Friday’s September jobs report and key releases, including ISM Manufacturing PMI, JOLTS Job Openings, and ADP Non-Farm Employment Change.
During Monday's session, U.S. Federal Reserve Chair Jerome Powell indicated the central bank would likely refrain from extra-large interest rate cuts if the economy remained strong.
Speaking at the National Association for Business Economics conference in Nashville, he projected two additional rate cuts totalling 50 basis points this year, contingent on the economy's progress.
The Fed initiated a new easing cycle earlier this month with a significant 50-basis-point cut.
Technical indicators show that the Relative Strength Index (RSI) is out of the overbought zone and is now mixed.
The Moving Average Convergence Divergence (MACD) holds a weak positive signal, and the Average Directional Index (ADX) indicates a ranging market.
Traders should closely monitor signals and adjust risk strategies amid ongoing volatility as profit-taking strengthens.
However, the recent break above $2,600 has revealed a potential target of $2,800.
A further pullback may find around 2,626-27 initial support, with support at $2,600-07.
This setup could create a potential bounce from these levels.
While there are notable opportunities, traders should exercise caution and closely monitor signals, as increased market volatility due to renewed demand is anticipated.
Daily Chart Spot Gold
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