Gold prices retreated nearly half percent this morning today. Prices dropped weighed by firm expectations that the US Federal Reserve will raise interest rates again in May. Amid a string of weak economic readings brewed concerns over slowing growth and fed into safe haven demand for the yellow metal.
Adding to this, dollar trading in a thin range dollar, as softer-than-expected manufacturing and employment readings weighed on the greenback in recent sessions, while also fueling fears of a potential recession this year. But hawkish signals from the Federal Reserve and other central banks limited any major gains in the yellow metal.
Today, US, Eurozone and UK PMI numbers are scheduled to be released. Which will decide the market trend. Market watchers will be on the lookout for signs of whether the recent turmoil in the banking sector is already affecting economic growth.
Technical Outlook
Since 17 April 2023, GOLD prices have been struggling to break their immediate resistance at 60680 and retreating towards 60150 levels.
Today, prices dropped from the day’s high of 60476 and trading at 60310.
On the above intraday chart, prices are trading on the verge of short term consolidation support of 60150 and a break below it will extend the recent fall. And Gold prices may test next support 59800-59650
RSI 14 and its 9 SMA is also giving negative crossover which also points for some correction.
Although, downside move could be limited ahead of AKSHAYA TRITIYA.
And possible pullback could expect from 59650-59700 in case, prices hold support around 59650. It may retest 60450-60680 again.
Overall trend may remain volatile. Hence trade cautiously.