Spot gold tumbles, crushing the uptrend - U.S. GDP and the Fed's preferred inflation gauge, the PCE price index, await
The bears exerted significant pressure on precious metal support after breaking the key area at $2,360-66, subsequently pushing through the short-term trend at $2,314-16 and exposing the $2,260-70 level.
Meanwhile, the U.S. Dollar Index (U.S. DXY) remains near five-month highs at 106.10.
Investors are awaiting updates on the U.S. economy's performance, with first-quarter GDP data scheduled for Thursday, followed by the latest reading on the Fed's preferred inflation gauge, the core personal consumption expenditures (PCE) price index, on Friday.
Last week, top Federal Reserve officials signalled the possibility of maintaining high interest rates to ensure inflation moves toward their 2% target, despite expectations of lower rates due to last year's sharp decline in inflation.
Recent reports indicating persistently high inflation have raised concerns about stalled progress.
Fed policymakers are currently in a media blackout period leading up to their policy meeting on May 1.
From a technical standpoint, the Relative Strength Index (RSI) 3-day 'lookback' indicator and the Moving Average Convergence Divergence (MACD) is negative, while the ADX (trend) indicator suggests a ranging market.
Given the high volatility, bears will likely continue weighing on the market, warranting further evaluation as the market declines.
Daily Chart Spot Gold
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