Spot Gold Gains Strength Amid Falling USD and Anticipated Economic Data
Spot Gold Gains Strength Amid Falling USD and Anticipated Economic Data
Spot Gold exhibited volatility but strengthened on Wednesday as the U.S. Dollar Index (DXY) declined from 101.75 to 101.30.
This movement comes as key economic reports approach, crucial for shaping the U.S. Federal Reserve's interest-rate decisions and assessing the economic outlook.
Recent weak economic data have increased expectations for the Fed's potential 50-basis-point rate cut this month.
The Job Openings and Labor Turnover Survey (JOLTS) revealed a drop in job openings for July to 7.67 million from 7.91 million in June, missing the 8.09 million forecast.
Traders closely monitor Friday’s jobs report for further clues on the Fed's next move and the overall economic direction.
A disappointing report could heighten recession fears and affect stock performance, while a robust report might provide some relief.
Based on technical assessment, the Relative Strength Index (RSI) is negative, the Moving Average Convergence Divergence (MACD) holds a weak bias, and the Average Directional Index (ADX) indicates a ranging market.
Although the gold market has weakened, the broader view is expected to remain bullish.
However, traders should monitor signals closely and adjust risk management strategies accordingly.
With the support intact at $2,488, the bullish bias may continue, aiming for resistance at $2,517-19.
A break above this level could lead to a $2,530-32 target and reassess positions from there. Beneath $2,488 views, the area of $2,458-62.
Daily Chart Spot Gold
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