Today, the price of gold showed a modest intraday increase. Prices rose to near three-week highs yesterday after the dollar hit a five-month low on weak economic data and also the US PCE price numbers are anticipated.
The dollar weakened after the United States revised its third-quarter gross domestic product growth to 4.9 percent from 5.2 percent, below the consensus estimate of 5.1 percent growth. The Philadelphia Fed manufacturing survey was also weaker than expected, coming in at -10.5 compared to expectations of -4.0, indicating continued weakness in the sector.
The US dollar rate as measured by the DXY index was 101.7560, the worst weekly performance in the last month. Gold rose modestly ahead of the release of the US core personal consumption (PCE) price index, which will influence future Fed and policy decisions and give prices a new direction.
The US Federal Reserve (Fed) adopted a hawkish stance at Wednesday’s meeting, agreeing to keep inflation under control at the end of 2023 with no rates planned for 2024 and predicting a 75 basis point hike next year. In light of this figure, market expectations are somewhat in line with Feds opinion, catalysing risk flows and reducing demand for the haven of the Greenback.
Technical Outlook – What’s the Affect on Gold due to the US PCE?
The price of gold rose by 0.42% yesterday. Prices rose to an intraday high of 62680 and reached 62503, compared to the previous day’s close of 62415.00.
On the above chart, prices broke through a huge resistance at 62720, which coincided with the previous consolidating resistance. Additionally, prices have found support around 62,000 since December 12, 2023, while the price is near 62,720.
Now, persistence above 62,720 will take prices to 63050-63350 soon. Otherwise, any decline to 62150-62100 will attract buying activity in the near term.
If it does not give a distribution below 61950.00. On the downside, a break below 61950 will add pressure to 61500-61050.
Commodity Samachar
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