The price of an ounce of gold stands at $ 1420 for several sessions. It seems clear on the daily chart of gold price, the forming of a consolidation zone, and this performance foreshadows the movement of forces coming in either direction, which will strengthen upwards if the dollar continued to weaken and global trade and geopolitical tensions increases, and vice versa, especially with the price of yellow metal reaching areas of strong saturation. Since their relationship is inverse, the price of gold will remain in a higher range as pressure continues on the US dollar amid expectations of the near date of the US interest rate cut for the first time in 10 years. The US Federal Reserve Governor Jerome Powell testified for two days in a row before two Senate and US Congress committees, in which he stressed that the US central bank is ready to cut rates sooner rather than later as trade tensions and concerns about the strength of the global economy continues, which directly affects the US economic outlook.
"Doubts about trade tensions and concerns about the strength of the global economy still affect the US economic outlook," Powell said. The recent dovish tone of the US central bank has contributed to record gains in US stocks, as investors believe the US central bank is ready to cut interest rates later this month.
Gold gains are still supported by several factors, mainly rising global geopolitical and trade tensions, even after optimism about renewed US-China negotiations to end the world's biggest trade dispute that threatens global economic growth.
In recent technical analysis, we have confirmed that US interest rate cut signals will support the decline of the US dollar and hence further gains in gold.
Technically: Gold prices today held steady around the 1400 psychological top, which strongly supports the uptrend. The nearest resistance levels are 1415, 1428 and 1440 respectively, which are the levels supporting the current bullish trend. On the downside, the nearest support levels for gold are 1410, 1395 and 1375 respectively. Buying strategy from every bearish level will continue to be the best way to deal with gold market.
On the economic data front: The economic calendar today will focus on the release of US data on retail sales, industrial production, and comments by Jerome Powell and its impact on the performance of the US dollar.
