Spot gold wavers as the US Dollar exhibits a modest rebound
On Tuesday, the price of gold fluctuated as the U.S. Dollar Index (U.S. DXY) gained minor momentum, reaching 105.36 at the close of the New York session.
With limited economic data, traders shifted focus to earnings reports and comments from U.S. Federal Reserve officials for insights into future stock movements.
Friday's cooler-than-expected jobs report suggested a delicate balance in the U.S. economy—strong enough to avert a severe recession yet not overly robust to drive high inflation.
Additionally, Federal Reserve Chair Jerome Powell hinted at a preference for cutting the main interest rate rather than hiking it despite persistently high inflation readings. Potential upcoming catalysts include U.S. consumer price data.
From a technical standpoint, the Relative Strength Index (RSI) shows mixed signals, while negativity persists in the Moving Average Convergence Divergence (MACD), and the Average Directional Index (ADX) suggests a ranging market.
As bearish sentiment strengthens, the market may target around $2,284-86 and further down to $2,254-58.
Renewed upward movements are likely to face resistance from $2,331-34.
Daily Chart Spot Gold
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