GOLD ranges between two key barriers as eyes turn to US PCE inflation
Gold price consolidates the previous rebound above key $3,225 support early Thursday.
US Dollar hits fresh three-year lows across the board as President Trump attacks Fed’s credibility again.
Gold price remains stuck between 21-day SMA and 50-day SMA amid a neutral daily RSI.
All eyes now remain on Thursday’s mid-tier US data and the US PCE inflation data on Friday.
Gold price is struggling to build on the previous rebound from weekly lows early Thursday even as the USD flirts with three-year lows against its major currency rivals. The Greenback extends its four-day losing streak, with the latest leg south fuelled by US President Trump’s fresh attack on the Fed credibility.
Citing some sources, the WSJ reported early Thursday that President Trump is considering selecting and announcing a successor for Fed Chair Jerome Powell by September or October.
Despite the persistent US Dollar weakness, Gold is finding it difficult to extend the recovery as the Iran-Israel truce offers markets some reprieve.
Additionally, Gold price continues to face headwinds from the recent pushback against expectations of a July Fed rate cut by Chair Powell during his two-day congressional testimonies.Powell told US lawmakers earlier in the week that he is in no hurry to cut interest rates until the Fed gets a clearer picture over whether Trump’s tariffs have pushed inflation to uncomfortably high levels.
Moving on, Gold price could regain upside traction if the Greenback loses further ground on growing concerns over the Fed’s independence.
Meanwhile, traders will closely eye the mid-tier US Durable Goods, Jobless Claims and Pending Home Sales data for fresh trading incentives.However, Gold price could await Friday’s US PCE Price Index data before embarking on a clear directional path.
Daily technical analysis
There is little change in the short-term technical outlook for Gold price.The daily chart shows that Gold price is holding onto the strong support of the 50-day SMA at $3,325.
Meanwhile, the upside appears limited by the 21-day SMA at $3,355.The 14-day RSI is gyrating around midline, currently trading near 50.20, suggesting two-way risks for the bright metal.
A failure to resist above the 50-day SMA on a daily closing basis will retest the 38.2% Fibo level of the April record rally at $3,297.A sustained break of the latter could trigger a fresh downtrend toward the $3,250 psychological barrier, below which the 50% Fibo level at $3,232 will come into play.
Alternatively, recapturing the 21-day SMA at $3,352 is critical for a sustained recovery from two-week troughs.The next upside hurdle is aligned at the 23.6% Fibo level at $3,377.Gold buyers will then target the $3,400 threshold once the 23.6% Fibo resistance is decisively taken out.
GOLD ranges between two key barriers as eyes turn to US PCE inflation
Gold price is struggling to build on the previous rebound from weekly lows early Thursday even as the USD flirts with three-year lows against its major currency rivals. The Greenback extends its four-day losing streak, with the latest leg south fuelled by US President Trump’s fresh attack on the Fed credibility.
Citing some sources, the WSJ reported early Thursday that President Trump is considering selecting and announcing a successor for Fed Chair Jerome Powell by September or October.
Despite the persistent US Dollar weakness, Gold is finding it difficult to extend the recovery as the Iran-Israel truce offers markets some reprieve.
Additionally, Gold price continues to face headwinds from the recent pushback against expectations of a July Fed rate cut by Chair Powell during his two-day congressional testimonies.Powell told US lawmakers earlier in the week that he is in no hurry to cut interest rates until the Fed gets a clearer picture over whether Trump’s tariffs have pushed inflation to uncomfortably high levels.
Moving on, Gold price could regain upside traction if the Greenback loses further ground on growing concerns over the Fed’s independence.
Meanwhile, traders will closely eye the mid-tier US Durable Goods, Jobless Claims and Pending Home Sales data for fresh trading incentives.However, Gold price could await Friday’s US PCE Price Index data before embarking on a clear directional path.
Daily technical analysis
There is little change in the short-term technical outlook for Gold price.The daily chart shows that Gold price is holding onto the strong support of the 50-day SMA at $3,325.
Meanwhile, the upside appears limited by the 21-day SMA at $3,355.The 14-day RSI is gyrating around midline, currently trading near 50.20, suggesting two-way risks for the bright metal.
A failure to resist above the 50-day SMA on a daily closing basis will retest the 38.2% Fibo level of the April record rally at $3,297.A sustained break of the latter could trigger a fresh downtrend toward the $3,250 psychological barrier, below which the 50% Fibo level at $3,232 will come into play.
Alternatively, recapturing the 21-day SMA at $3,352 is critical for a sustained recovery from two-week troughs.The next upside hurdle is aligned at the 23.6% Fibo level at $3,377.Gold buyers will then target the $3,400 threshold once the 23.6% Fibo resistance is decisively taken out.
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