The rebound in spot gold will likely struggle as investors await the Fed's preferred inflation gauge, the PCE index
The precious yellow metal holds steady, and the U.S. dollar index remains flat at 105.60.
The U.S. economy is growing slowly, with core inflation rising to 3.7% compared to 2% previously.
This signals a potential delay in the U.S. Federal Reserve's planned interest rate cuts due to inflation's rise.
The Commerce Department's report shows that the U.S. gross domestic product (GDP) grew at a seasonally adjusted and inflation-adjusted rate of 1.6% in the first quarter, falling below the previous 2.2% growth and missing the expected forecast of 2.4%.
While Fed policymakers are currently in a media blackout ahead of their May 1 policy meeting, the March Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, is scheduled for release on Friday.
Technical indicators show mixed results, with the Relative Strength Index (RSI) rebounding, the Moving Average Convergence Divergence (MACD) being negative, and the ADX (trend) indicator suggesting a ranging market.
Due to high volatility, bears will likely continue to weigh on the market, warranting further evaluation as the market declines. This could lead to a region of $2,250-$70.
Conversely, a $2,333-37 breach could signal upward momentum, warranting reassessment.
Daily Chart Spot Gold
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