The gold price showed strong buying interest yesterday despite the Federal Reserve (Fed) showing no interest in cutting interest rates in the first half of 2024. Higher interest rates are negative for non-yielding gold because they increase the opportunity cost of holding interest.
On the geopolitical front, tensions between Israel and Hamas rose as both countries downplayed expectations of a ceasefire. Meanwhile, the Palestinian-backed Hamas said it had fired several rockets into northern Israel.
Downbeat US Durable Goods Orders data for January released on Tuesday failed to catalyze gains in gold price. Fresh orders for Durable Goods were down by 6.1%, while investors projected a decline of 4.5%. Weak demand for durable goods indicates a poor outlook for consumer spending.
Furthermore, US dollars have been stalled for a while as the second estimate of fourth quarter gross domestic product (GDP) shows that the economy grew 3.2%, compared to expectations of 3.3%.
Today, the United States core Personal Consumption Expenditure price index (PCE) data for January is due to release, which will give fresh cues about the timing for rate cuts.
Technical Outlook – Gold
Since February 14, 2024, gold prices have enjoyed a recovery. Prices found support at 61190 and moved to yesterday’s high of 62239. Prices stabilized at 62249 from the previous day’s close of 62301.00
On the above chart, prices are trading below the triangle. Which has huge resistance at 62380 and support at 62050.00. As the previous momentum remained positive, prices were expected to rise and any decline to 621150-62100 could be followed by a recovery. Mass resistance remains intact at 62,380, above which prices may test 62,600-62,950.00
On the downside, there is major support at 62,050 and below that, prices may decline to 61,900-61,750.00.
Commodity Samachar
Learn and Trade with Ease
Also Read: US GDP Data: The ‘Real’ Market Influencer is Here!! , Aluminum on the Rise: Is a Positive Price Trend Ahead?
Recommended Read: Forex News Letter : Significant Shift in the Market Incoming?
Want help on your traders?
Chat with our Analyst