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
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