Spot Gold—Can the bulls regain control of the market before crucial U.S. inflation data are released?
The price of precious metals started the short-holiday week on a bullish note as the U.S. Dollar (U.S. DXY) retreated from 104.40 to 104.18.
This week, the focus shifts to U.S. GDP figures on Thursday, followed by the latest update of the Federal Reserve's preferred inflation metric, the Core Personal Consumption Expenditure (PCE) index, coinciding with the Good Friday market holiday.
Traders anticipate rate cuts beginning in June, as the Fed's main rate has held at its highest level since 2001 for nearly eight months.
Additionally, remarks from Fed Governor Christopher Waller and Chairman Jerome Powell are expected to garner significant attention.
Based on technical analysis, the Relative Strength Index (RSI) 3-day 'lookback' indicator is mixed.
The Moving Average Convergence Divergence (MACD) is weak, and the ADX indicator supports a ranging market.
Caution is warranted following last week's "bearish spinning top" pattern, which often signals high volatility and potential weakness.
If downside pressure resumes, it may test the critical area around $2,140-46.
However, a potential bounce towards $2,188 is still possible.
Traders should continuously reassess at key levels and adjust strategies accordingly.
Daily Chart Spot Gold
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