Spot Gold Hits a Standstill Near $2,674 as Profit-Taking Emerges
Spot Gold encountered resistance near the $2,674 level, prompting profit-taking among traders.
Meanwhile, the U.S. Dollar Index (DXY), which gauges the greenback against a basket of currencies, declined to 100.40.
Investors responded favourably to the latest inflation report, with price pressures moving closer to the Fed's 2% target.
This supported the Fed's recent 50-basis-point rate cut and raised expectations for further easing. August’s core PCE index rose 0.1%, meeting estimates, while the year-over-year figure hit 2.2%, just below the 2.3% forecast.
Markets anticipate at least a 25-basis-point cut in November, with a 50-point cut still possible.
The U.S. policy rate, currently at 4.75%- 5.00%, is expected to fall by 75 basis points by year-end, reaching 3.00%- 3.25% by mid-2025.
Looking ahead, investors will monitor Friday’s September jobs report and Fed Chair Jerome Powell’s economic outlook address on Monday, along with key data releases such as ISM Manufacturing PMI, JOLTS Job Openings, and ADP Non-Farm Employment Change.
Technical indicators show that the Relative Strength Index (RSI) remains positive but in overbought territory.
The Moving Average Convergence Divergence (MACD) is also positive, and the Average Directional Index (ADX) indicates a mild bullish trend.
Traders should closely monitor signals and adjust risk strategies amid ongoing volatility, as profit-taking may occur soon.
However, the recent break above $2,600 has revealed a potential target of $2,800.
Any pullback is likely to be limited, supported by the bullish bias indicated by the ADX.
Daily Chart Spot Gold
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