Spot gold wavers ahead of crucial economic data, while the Fed's decision is expected to remain unchanged, but a rate hike isn't off the table.
The precious metal faced volatility on Friday amidst mixed economic data, and the U.S. Dollar Index rose to a five-month high of 106.10.
While the Federal Reserve's preferred measure of monthly inflation met expectations, personal consumption expenditures (PCE) exceeded forecasts, hitting 2.7% in the year to March, above the 2% target.
Despite this, market confidence remained largely unchanged, though there was a slight uptick in expectations for a Federal Reserve rate cut in September.
Federal Reserve Chair Jerome Powell emphasized the need for confidence in achieving the 2% inflation target before considering rate cuts, suggesting the post-announcement statement will likely maintain a stance of no urgency for reductions.
Technical indicators lack bullish momentum, with the Relative Strength Index (RSI) showing a failed bounce, a negative Moving Average Convergence Divergence (MACD), and an ADX indicating a ranging market.
Given high volatility, bears are expected to continue influencing the market, warranting further evaluation as declines may target $2,288 or even the $2,250-70 region.
Conversely, a breach of $2,337 could signal upward momentum, prompting reassessment.
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.