The price of gold jumped above a two-week high on Thursday, as the Federal Reserve expected to cut interest rates this year. Expectations were boosted by the release of weaker US economic data, which added to recent signs of slowing economic growth.
Meanwhile, the position of the Bank of England (BoE) on raised investments for exchange rate reduction in August. In addition, the European Central Bank’s (ECB) decision to start cutting interest rates earlier this month and the Swiss National Bank’s (SNB) second rate cut in 2024 reinforce the near-term positive outlook for non-productive yellow metals. The Swiss franc also fell after the Swiss National Bank cut interest rates to 1.25% following its March cut
That said, an uptick in the US Treasury bond yields and the underlying bullish tone across the global equity markets turn out to be key factors acting as a headwind for the safe-haven precious metal.
The US Department of Labor reported that the number of Americans applying for unemployment insurance fell to 238K in the week ending June 15 compared to the 235K expected.
Housing Starts declined 5.2% to a seasonally adjusted annual rate of 982K units in May, and Building Permits fell 2.9% to 949K units.
Adding to this, the Philadelphia Fed Manufacturing Index unexpectedly declined to 1.3 in June from 4.5 in the previous month, though it remained in positive territory for a fifth successive month.
Today, PMI number of Eurozone, U.K, Japan and US will lead price momentum. While, focus will on Existing Home Sales data which could weight on the gold prices.
Gold: Technical Outlook
The price of gold rose by more than one percent yesterday. After hitting a two-week high of 72850, prices settled at 72586, compared to the previous day’s 71732.00
Intraday price momentum forms a bullish candlestick, after which prices traded above the short-term moving average. Both indicate that prices may move to a positive node.
However, it should break the immediate resistance at 73250 to test 73550-73850. Alternatively, prices may consolidate between 72900-71850 in today’s trading session
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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