Gold extends its struggle near $3,350 amid global risk rally
Gold holds the previous bounce led by US CPI data early Wednesday.
The US Dollar hangs near two-week lows amid heightened Fed rate cut expectations and risk rally on global stocks.
Gold appears vulnerable as the 4H chart portrays a bearish outlook.
Gold is finding it difficult to build on the previous rebound from weekly lows of $3,331 early Wednesday, as $3,350 appears to be a tough nut to crack for buyers.
Markets are on a roll higher amid a bunch of positive developments, including the extension of the US-China trade truce, a potential meeting between US President Donald Trump and his Russian counterpart, Vladimir Putin, and heightened bets of a September Federal Reserve (Fed) interest rate cut.
The benign July US CPI data eased stagflation concerns, stoked by Trump’s tariffs, bolstering dovish Fed expectations and alleviating market pressures.
In the 12 months through July, the CPI rose 2.7%, at the same pace seen in June, missing the 2.8% growth expected.Monthly CPI and core CPI aligned with estimates in July, advancing by 0.2% and 0.3%, respectively.
Shorter-duration US Treasury bond yields tanked following the US inflation data, pushing up non-yielding Gold at the expense of the US Dollar.
However, in Wednesday’s trading thus far, Gold is facing headwinds from reduced demand for havens as risk flows dominate.
Looking ahead, dovish Fed expectations could keep the downside checked in Gold, with all eyes on Fedspeak, in the absence of top-tier US macro releases.
Meanwhile, hopes of a rebound in Indian jewellery demand in the second half of this year could remain supportive of the bright metal amid sustained China’s central bank buying. India and China are the world’s largest Gold consumers.
Daily technical analysis
The four-hour (4H) chart paints a bearish picture for Gold in the coming sessions, with the RSI lurking below the midline, currently near 41.50.
Strengthening the downside bias, the 21-4H SMAis crossing the 50-4H SMA from above to confirm a Bear Cross.If the 200-4H SMA at $3,346 gives way on a sustained basis, a fresh decline toward the $3,300 round level cannot be ruled out.
Further south, Gold sellers will target the August low of $3,274.
On the other hand, Gold price needs a firm break above the 100-4H SMA at $3,357 to add legs to the previous rebound.
The next bullish target is aligned at the confluence of the 21-4H SMA and the 50-4H SMA at $3,369, above which the $3,400 threshold will be tested.
Gold extends its struggle near $3,350 amid global risk rally
Gold is finding it difficult to build on the previous rebound from weekly lows of $3,331 early Wednesday, as $3,350 appears to be a tough nut to crack for buyers.
Markets are on a roll higher amid a bunch of positive developments, including the extension of the US-China trade truce, a potential meeting between US President Donald Trump and his Russian counterpart, Vladimir Putin, and heightened bets of a September Federal Reserve (Fed) interest rate cut.
The benign July US CPI data eased stagflation concerns, stoked by Trump’s tariffs, bolstering dovish Fed expectations and alleviating market pressures.
In the 12 months through July, the CPI rose 2.7%, at the same pace seen in June, missing the 2.8% growth expected.Monthly CPI and core CPI aligned with estimates in July, advancing by 0.2% and 0.3%, respectively.
Shorter-duration US Treasury bond yields tanked following the US inflation data, pushing up non-yielding Gold at the expense of the US Dollar.
However, in Wednesday’s trading thus far, Gold is facing headwinds from reduced demand for havens as risk flows dominate.
Looking ahead, dovish Fed expectations could keep the downside checked in Gold, with all eyes on Fedspeak, in the absence of top-tier US macro releases.
Meanwhile, hopes of a rebound in Indian jewellery demand in the second half of this year could remain supportive of the bright metal amid sustained China’s central bank buying. India and China are the world’s largest Gold consumers.
Daily technical analysis
The four-hour (4H) chart paints a bearish picture for Gold in the coming sessions, with the RSI lurking below the midline, currently near 41.50.
Strengthening the downside bias, the 21-4H SMAis crossing the 50-4H SMA from above to confirm a Bear Cross.If the 200-4H SMA at $3,346 gives way on a sustained basis, a fresh decline toward the $3,300 round level cannot be ruled out.
Further south, Gold sellers will target the August low of $3,274.
On the other hand, Gold price needs a firm break above the 100-4H SMA at $3,357 to add legs to the previous rebound.
The next bullish target is aligned at the confluence of the 21-4H SMA and the 50-4H SMA at $3,369, above which the $3,400 threshold will be tested.
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