- Despite the holidays, low liquidity, and wait-and-see mode, gold prices moved to the historical psychological resistance level of $2200 per ounce during yesterday's trading.
- This was before stabilizing around $2178 per ounce at the start of a very quiet trading day.
Yesterday, Gold's gains came amid a decline in the US dollar, as investors continued to bet on US rate cuts while awaiting the US Personal Consumption Expenditures Price Index report on Friday.
Last week, the US Federal Reserve maintained its forecast of three interest rate cuts this year, which increased the attractiveness of the gold market. However, US durable goods orders came in better than expected in February, and several US Federal Reserve officials expressed concern about stubborn inflation and a resilient economy. Currently, financial markets expect a roughly 70% chance that the Fed will start cutting US interest rates in June compared to a roughly 55% chance before the meeting.
Meanwhile, gold as a safe haven asset is not supported by escalating geopolitical tensions in the Middle East and Eastern Europe, as the UN Security Council demands an immediate ceasefire in Gaza.
Top Forex Brokers
US stock market indices ended yesterday's trading with a decline, amid a backdrop of mixed economic data and anticipation of the personal consumption expenditures inflation report, which could provide insight into future US interest rate cuts from the Federal Reserve. According to stock trading platforms, the Standard & Poor's 500 and Dow Jones indexes fell by about 0.3% and 0.1%, respectively, extending their losses for the third session in a row, while the Nasdaq index fell by 0.4%.
Economic Outlook
On the economic front, according to the results of economic calendar data, US durable goods orders exceeded expectations in February, but US consumer confidence, as measured by the Conference Board, came in lower than expected. Federal Reserve officials have provided a range of opinions, leading to divergent views, with the likelihood of a rate cut in June estimated at around 70% currently. In trading, Nvidia shares fell by 2.5% after hitting new record highs earlier in the session. Apple shares lost 0.7% as iPhone shipments in China dropped by about 33% on a yearly basis in February. On the other hand, Tesla's stock rose by 2.9% after Elon Musk revealed a one-month trial of full self-driving technology for US customers. At the same time, Trump Media shares surged by 50% in its first appearance on the Nasdaq exchange, and Reddit shares rose by 10%, based on gains from the initial public offering.
Gold Price Forecast and Analysis Today:
According to the performance on the daily chart, the general trend of the gold price is still bullish. It is breaching the psychological resistance of $2,200 per ounce which strengthens bulls’ control over the trend. At the same time, the technical indicators are moving towards strong levels of saturation with buying, and accordingly, selling operations may occur to take profits if the US dollar gains momentum. Obviously, the current upward trend in the price of gold will not be broken without moving towards the support levels of $2100 and $2080, respectively.
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