GOLD buyers face rejection at $3,400 yet again; what next?
Gold hits two-week highs at $3,400, then turns south toward Wednesday’s low near $3,375.
The US Dollar downside extends amid a slightly upbeat mood, ahead of US data flow.
Technically, acceptance above $3,400 is critical for a sustained uptrend, with RSI still bullish.
Gold is replicating the retracement moves seen in Wednesday’s Asian trades, after having faced rejection once again at the $3,400 threshold.
Gold buyers are taking a breather early Thursday, bracing for a slew of mid-tier US economic data releases, including the US second-quarter GDP revision, Jobless Claims and Pending Home Sales, for fresh hints on whether the US Fed will lower interest rates further beyond the September policy meeting.
The CME Group’s Fed Watch Tool shows roughly 90% odds of a September Fed rate cut, especially after Wednesday’s dovish commentary from New York Fed President John Williams.
Gold staged a solid rebound on Wednesday, following his comments, further deriving support from the ongoing drama between US President Donald Trump and Fed Governor Lisa Cook.Citing sources, CNBC News reported that Fed Governor Lisa Cook’s lawsuit against US President Trump’s effort to fire her could be filed soon.
Trump’s continued attacks on the Fed’s autonomy and dovish Fed expectations will likely keep any downside limited in Gold going forward.
Additionally, a simmering global trade war could also keep the haven demand for Gold intact. Mexico and Canada plan to increase tariffs on China, while India faces 50% tariffs from the US over its Russian oil purchases.
US-Japan trade talks are at a standstill after the Japanese trade negotiator cancelled his visit to Washington due to administrative issues.
pulling back from the $3,400 neighbourhood, having refreshed two-week highs early Wednesday. Concerns over the US Fed autonomy and latest US tariff threats could cushion any downside in Gold.
Daily technical analysis
The short-term technical outlook for Gold remains upbeat as long as the 14-day RSI stays above the 50 level. The leading indicator is currently flatlined near 57.00
Buyers also stay hopeful as a Bull Cross remains in play. The 21-day SMA closed above the 50-day SMA on Monday, confirming the bullish crossover.
The immediate topside hurdle is seen in the $3,400 area, above which the static resistance at around $3,440 will be back in play.
To the downside, sellers will test the 21-day SMA at $3,359, below which the 50-day SMA at $3,348 could act as a tough nut to crack.
The next solid support is located at the 100-day SMA at $3,328. Only a sustained move below the latter will negate any positive bias in the medium term.
GOLD buyers face rejection at $3,400 yet again; what next?
Gold is replicating the retracement moves seen in Wednesday’s Asian trades, after having faced rejection once again at the $3,400 threshold.
Gold buyers are taking a breather early Thursday, bracing for a slew of mid-tier US economic data releases, including the US second-quarter GDP revision, Jobless Claims and Pending Home Sales, for fresh hints on whether the US Fed will lower interest rates further beyond the September policy meeting.
The CME Group’s Fed Watch Tool shows roughly 90% odds of a September Fed rate cut, especially after Wednesday’s dovish commentary from New York Fed President John Williams.
Gold staged a solid rebound on Wednesday, following his comments, further deriving support from the ongoing drama between US President Donald Trump and Fed Governor Lisa Cook.Citing sources, CNBC News reported that Fed Governor Lisa Cook’s lawsuit against US President Trump’s effort to fire her could be filed soon.
Trump’s continued attacks on the Fed’s autonomy and dovish Fed expectations will likely keep any downside limited in Gold going forward.
Additionally, a simmering global trade war could also keep the haven demand for Gold intact. Mexico and Canada plan to increase tariffs on China, while India faces 50% tariffs from the US over its Russian oil purchases.
US-Japan trade talks are at a standstill after the Japanese trade negotiator cancelled his visit to Washington due to administrative issues.
pulling back from the $3,400 neighbourhood, having refreshed two-week highs early Wednesday. Concerns over the US Fed autonomy and latest US tariff threats could cushion any downside in Gold.
Daily technical analysis
The short-term technical outlook for Gold remains upbeat as long as the 14-day RSI stays above the 50 level. The leading indicator is currently flatlined near 57.00
Buyers also stay hopeful as a Bull Cross remains in play. The 21-day SMA closed above the 50-day SMA on Monday, confirming the bullish crossover.
The immediate topside hurdle is seen in the $3,400 area, above which the static resistance at around $3,440 will be back in play.
To the downside, sellers will test the 21-day SMA at $3,359, below which the 50-day SMA at $3,348 could act as a tough nut to crack.
The next solid support is located at the 100-day SMA at $3,328. Only a sustained move below the latter will negate any positive bias in the medium term.
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