GOLD attempts another run toward record highs, will it succeed?
Gold sees dip-buying, set for fourth straight weekly gain on Friday.
US Dollar rebounds on short covering, despite the risk rally on global stocks.
The focus now remains on trade headlines and US Consumer Sentiment data.
Technically, Gold remains at a risk of a sharp correction amid extreme overbought conditions.
Gold is reversing the previous decline to retest the $3,650 barrier early Friday.
Traders turn their attention to the preliminary Michigan Consumer Sentiment data amid rising bets for aggressive Fed interest rate cuts this year.Gold is back in the green zone, but remains within this week’s range. Buyers gather pace before resuming the record rally.
Despite a pause in the USD downtrend and a risk-on market profile, Gold finds fresh haven demand as fresh tariff headlines from US President Donald Trump weigh on investors’ sentiment.The Financial Times reported late Thursday that the US plans to urge G7 nations to hit India and China with sharply higher tariffs for Russian oil purchases in an attempt to force Moscow into peace talks with Ukraine.
Meanwhile, markets are widely expecting the Fed to deliver three rate cuts this year, with chances of a jumbo rate reduction still alive for the September meeting.
Markets continue pricing in about a 92% chance of a 25 basis points rate cut at the Fed’s September meeting and an 8% probability of a 50 bps rate cut, according to the CME Group’s FedWatch tool.
The dovish narrative remains intact as weakening labor market conditions overshadow sticky inflation, bolstering the non-interest-bearing Gold.The US CPI increased by 0.4% over the month in August, double the 0.2% rise recorded in July. This pushed the annual inflation rate to 2.9%, in line with the market expectations.
Later in the day, the US Consumer Sentiment and Inflation Expectations data could provide fresh cues on the Fed’s path forward on rates, impacting the USD-denominated Gold.
However, trade headlines will also be closely monitored, while Gold eyes a fourth consecutive weekly advance.
Daily technical analysis
The daily chart shows that Gold firms up again, notwithstanding the extreme overbought conditions, as displayed by the 14-day RSI, currently near 77.50.
If sellers fight back control, the immediate support is seen at the $3,600 round figure, below which this week’s low of $3,578 could be tested.A sustained break below the latter will open up a fresh downside toward the $3,550 psychological mark.
However, if buyers stand tall, the record high of $3,675 will be challenged, with the next resistance seen at the $3,700 level
Further up, the $3,750 region could challenge the bearish commitments.
GOLD attempts another run toward record highs, will it succeed?
Gold is reversing the previous decline to retest the $3,650 barrier early Friday.
Traders turn their attention to the preliminary Michigan Consumer Sentiment data amid rising bets for aggressive Fed interest rate cuts this year.Gold is back in the green zone, but remains within this week’s range. Buyers gather pace before resuming the record rally.
Despite a pause in the USD downtrend and a risk-on market profile, Gold finds fresh haven demand as fresh tariff headlines from US President Donald Trump weigh on investors’ sentiment.The Financial Times reported late Thursday that the US plans to urge G7 nations to hit India and China with sharply higher tariffs for Russian oil purchases in an attempt to force Moscow into peace talks with Ukraine.
Meanwhile, markets are widely expecting the Fed to deliver three rate cuts this year, with chances of a jumbo rate reduction still alive for the September meeting.
Markets continue pricing in about a 92% chance of a 25 basis points rate cut at the Fed’s September meeting and an 8% probability of a 50 bps rate cut, according to the CME Group’s FedWatch tool.
The dovish narrative remains intact as weakening labor market conditions overshadow sticky inflation, bolstering the non-interest-bearing Gold.The US CPI increased by 0.4% over the month in August, double the 0.2% rise recorded in July. This pushed the annual inflation rate to 2.9%, in line with the market expectations.
Later in the day, the US Consumer Sentiment and Inflation Expectations data could provide fresh cues on the Fed’s path forward on rates, impacting the USD-denominated Gold.
However, trade headlines will also be closely monitored, while Gold eyes a fourth consecutive weekly advance.
Daily technical analysis
The daily chart shows that Gold firms up again, notwithstanding the extreme overbought conditions, as displayed by the 14-day RSI, currently near 77.50.
If sellers fight back control, the immediate support is seen at the $3,600 round figure, below which this week’s low of $3,578 could be tested.A sustained break below the latter will open up a fresh downside toward the $3,550 psychological mark.
However, if buyers stand tall, the record high of $3,675 will be challenged, with the next resistance seen at the $3,700 level
Further up, the $3,750 region could challenge the bearish commitments.
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