Spot gold rebounds after U.S. Fed signals no change
The price of gold surged as the U.S. Dollar Index retreated from its five-month peak following the U.S. Federal Reserve's decision to hold interest rates steady.
Fed Chair Jerome Powell's emphasis on the central bank's focus on inflation and ruling out an immediate rate hike helped alleviate traders' concerns.
Additionally, U.S. jobless claims rose to a two-month high, heightening anticipation for April's jobs report, which is expected to show a slight decrease in job gains compared to March.
Investors eagerly await April's jobs report after a robust showing in March, with headline U.S. Non-Farm Payrolls (NFP) anticipated to have increased by approximately 240,000 jobs last month, slightly below March's pace of 303,000.
However, a print in line with consensus would roughly match the 'breakeven' rate necessary to sustain employment growth in line with labour force expansion.
Technical indicators suggest a mixed to bearish sentiment, with the Relative Strength Index (RSI) showing a mixed bias, the Moving Average Convergence Divergence (MACD) signalling negativity, and the Average Directional Index (ADX) indicating a ranging market.
Expectations of continued high volatility suggest a potential return of bearish sentiment.
Further evaluation is warranted following the rebound and break of the $2,302-07 level.
Overall, the recent break of $2,288 may have opened the path to a downside trajectory targeting $2,250-70.
Daily Chart Spot Gold
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