The latest US flash Services PMIs will be released at 8.15pm today. Which expect to bring volatile momentum in Gold prices. A higher than forecasted data may result in pressure in bullions prices. Adding to this, tomorrow’s FOMC minutes will likely have a significant impact.
Gold prices had a range bound trade since the last trading session. Today, prices retreated from the day’s high of 56191 and currently trading at 56050, down 0.59%. Yellow metals showing some correction as traders holding off big bets in anticipation of more cues on monetary policy. From the minutes of the Federal Reserve’s February meeting.
Comex gold future were at $1833.23 an ounce by 20:32 ET (01:32 GMT). Both instruments were nursing three straight weeks of losses.
Markets were also awaiting a slew of Fed speakers this week. As overheated U.S. inflation and strength in the jobs market put the central bank‘s policies squarely in focus.
Gold and other metal markets saw limited trade so far this week. With U.S. markets closed for a holiday on Monday. But demand for the dollar persisted in Asian and European trade, keeping a lid on bullion prices.
Hotter-than-expected U.S. inflation readings swiftly cut short a recent rally in gold prices. As markets drastically reassessed their expectations for interest rate hikes this year.
Stubborn inflation, coupled with signs of strength in the jobs market. Gives the Fed enough impetus to keep raising interest rates. The minutes of the Fed’s February meeting, due on Wednesday, are likely to reiterate the central bank’s hawkish stance.
A spike in U.S. Treasury yields and the dollar weighed heavily on non-yielding assets such as gold and other metals. With U.S. yields set to rise even further in tandem with interest rates. The near-term outlook for gold appeared dim, as some Fed officials warned that U.S. interest rates could rise past 6% this year.
since 16 February 2023, MCX GOLD future trading below resistance of 56385. The daily price action resulted in formation of neutral candlestick on the chart.
Now, Gold future is trading on a verge of 50 SMA support at 55955, cmp 56066. If prices break and trade below it then there would be probability for correction towards 55650 again.
On the upside, massive resistance is seen at 56385 and a break above only would open the door for 56750-56950.
All over trend expect to remain indecisive ahead of important FOMC meeting minutes. Trade with only levels.