The gold price today fell sharply by more than three percent. It was the biggest weekly drop since October 2022. Expectations of a US interest rate cut started to fade after the Fed barked in the last few minutes.
The minutes of the Fed’s last meeting showed a direct debate among policymakers about whether current interest rates are restrictive enough to control inflation.
While the current policy response would call for keeping interest rates at current levels, the minutes reflected discussions about possible increases. Higher interest rates make high-yield gold a less attractive investment.
Although, The US Durable Goods Orders data was better than expected, but a downward revision to the previous month’s reading diminished the report’s impact, giving the green light to Gold buyers.
Friday’s data did little to increase investors’ optimism about loosening Fed policy. The US Department of Commerce revealed a goodish Durable Goods Orders report for April, but March’s downward revision weighed on the Greenback. That and the fall in US Treasury yields sponsored Gold’s recovery after hitting a low.
Meanwhile, the University of Michigan’s (UoM) recent poll that measures consumer sentiment showed a slight improvement, yet inflation expectations were mixed.
The US 10-year Treasury note is yielding 4.461% and loses one-and-a-half basis points, undermining the Greenback. The US Dollar Index, which tracks the buck’s performance against a basket of peers, trades at 104.70, down 0.33%.
Technical Outlook – Gold Price Today:
The Gold price today posted over 3% fall, that was worst weekly loss since 10 October 2022. Prices retreated from the life time high 74442 and made a low 71211.00, settled at 71256.00.
A formation of a long bearish candle stick is indicating for a weakness in a near future. RSI is also indicating for bearish picture as of now. On the downside, immediate support is seen at 70650-70250.00.
on the upside, immediate resistance is seen at 72150-73050.00
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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