🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Gold Edges Up Amid Rising September Rate Cut Bets

Published 07/10/2024, 03:07 AM

Gold prices continue to experience an upward trend, reaching 2368 USD per troy ounce, fuelled by growing market anticipation of a potential rate cut by the US Federal Reserve. As investors focus on upcoming US inflation data, gold remains a focal point of investment interest.

In his recent testimony before Congress, Federal Reserve Chair Jerome Powell highlighted June's improved yet uncertain economic indicators. He noted the need for more comprehensive data to solidify inflation forecasts and hinted at concerns over a slowing economy and a cooling job market. These developments are considered critical drivers for the speculated rate cut in September, currently perceived as likely by 73% of market analysts.

Additionally, increased investment flows into exchange-traded funds (ETFs) bolster gold's appeal, marking a second consecutive month of positive cash inflows. This investment trend underscores gold's role as a safe-haven asset amid financial market uncertainties.

Technical analysis of XAU/USD

Gold price analysis today

Gold's XAU/USD trajectory on the H4 chart shows a potential movement towards the 2337.43 USD level. A rebound to 2365.20 USD could follow, testing this resistance from below. The market may then gear up for a further downward movement towards 2281.66 USD, potentially extending to 2175.00 USD. This bearish outlook is supported by the MACD indicator, which is currently at its peak and poised for a downward adjustment towards the zero level.
Gold price analysis today

On the H1 chart, gold is consolidating around the 2365.20 USD mark. A downward break is anticipated, targeting 2337.43 USD as the immediate goal. Should this level be reached, a subsequent upward correction back to 2365.20 USD is likely. This scenario is validated by the stochastic oscillator, which signals a potential decline from its current high position near 80, suggesting a near-term downward correction before further gains.

As the market navigates through these potential movements, investors remain vigilant, watching closely for any new economic data or policy shifts that could influence gold's price dynamics and the broader financial landscape.

By RoboForex Analytical Department


Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.