The Gold price today recovered from yesterday’s lows as weaker-than-expected US economic data on expectations that the Federal Reserve will cut interest rates later this year lifted the dollar and bond yields.
Strong expectations that the Federal Reserve (Fed) will cut interest rates later this year supported yesterday’s rally. Bets were supported by US macro data released on Monday, which showed a slowdown in manufacturing and the economy.
This in turn pushes the US dollar (USD) to near two-month lows and should continue to act as an unproductive tailwind for the yellow metal.
Data showed U.S. manufacturing activity slowed for a second straight month in May, and U.S. construction spending fell unexpectedly for a second consecutive month in April on declines in non-residential activity.
The dollar DXY fell to a three-week low against its rivals, making gold more attractive for other currency holders, while Benchmark U.S. Treasury yields fell to a two-week low after soft manufacturing data.
Data on Friday showed that the U.S. inflation had stabilized in April, suggesting the U.S. central bank’s interest rate cut plans later this year remained intact.
Further, US macro releases this week, including the Nonfarm Payrolls (NFP) report on Friday. And key central bank event risks – the Bank of Canada (BoC) decision on Wednesday and the European Central Bank (ECB) meeting on Thursday – could provide some impetus to the bullions prices and help determine the near-term trajectory.
Technical Outlook – Gold Price Today
The Gold Price Today recovered from the day’s low of 71290 and rose to a high of 72400 before settling at 72203, up 0.51% from the previous day’s 71834.00.
On the chart above, prices are trying to trade above the immediate support of 71500 from May 24, 2024, forming an uncertain candlestick. Although prices are still below the short-term moving average.
Thus, the gold price today may stabilize or struggle for direction in the near future, unless it gives a clear break to resistance or support.
On the upside, there is immediate resistance at 72800-73050-73350. On the downside, support is visible at 71700-71050.
Happy Trading!
Commodity Samachar
Learn and Trade With Ease
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