Spot Gold Rebounds Slightly After Bearish Engulfing; Focus on Inflation Reports
Spot Gold Rebounds Slightly After Bearish Engulfing; Focus on Inflation Reports
Spot Gold experienced a volatile session, rebounding slightly after a bearish engulfing candlestick on Friday.
The U.S. Dollar Index (DXY) rebounded, closing at 101.60.
Traders are awaiting this week's inflation reports for insights into potential Federal Reserve rate cuts, with expectations for a 50-basis point reduction at the September 17-18 meeting and fewer anticipating a 25-basis point cut.
Wednesday’s CPI report is expected to show August inflation at 2.6% year-over-year and 0.2% month-over-month, with producer price data due Thursday.
Based on technical indicators, the Relative Strength Index (RSI) is mixed, the Moving Average Convergence Divergence (MACD) is negative, and the Average Directional Index (ADX) shows a ranging market.
Due to the bearish engulfing candlestick posted on Friday suggests renewed supply could emerge in the week.
Traders should monitor signals closely and adjust risk strategies if the $2,480-$2,488 level is breached, as further stop-losses may be triggered to $2,456-58 before any potential bullish correction.
Daily Chart Spot Gold
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.