Gold holds the previous bounce from three-day lows, re-attempts $3,650 early Friday.
US Dollar stalls its recovery from post-Fed plunge, eyes Fedspeak, trade headlines.
Gold looks to retest record highs as the daily RSI returns to the bullish zone.
Gold is testing offers near $3,650 early Friday, holding Thursday’s late rebound from three-day lows near $3,627.
Gold eyes a fifth consecutive weekly gains despite the less dovish-than-expected US Fed policy announcements on Wednesday and Thursday’s encouraging US economic data, which helped the USD stage a decent recovery.
The Fed lowered interest rates by the expected 25 basis points , while the Summary of Economic Projections , the so-called Dot Plot chart, showed that the Fed policymakers project two additional rate cuts this year.
However, Fed Chairman Jerome Powell, in his post-policy meeting press conference, adopted a measured rhetoric on further policy easing. Powell called the rate cut a risk management policy action and maintained the bank’s ‘meeting-by-meeting’ stance.
Meanwhile, data on Thursday showed that Initial claims for state unemployment benefits decreased 33,000 to a seasonally adjusted 231,000 for the week ended September 13, partially reversing a surge in the prior week to the highest level since October 2021.The Philadelphia Federal Reserve Manufacturing Index surged to 23.2 in September, a significant leap from the estimated rebound of 2.3.
The USD’s upswing could also be attributed to a short-covering spree as markets perceived the recent declines as excessive.
Looking ahead, Gold could build on the rebound if the recent bullish momentum in the USD loses steam. However, the renewed US-China trade optimism could remain supportive of the Greenback, capping Gold’s move higher.
Additionally, Gold could also be influenced by the USD dynamics, induced by the USD/JPY pair in the aftermath of the no rate change decision expected by the Bank of Japan this Friday.
In the absence of top-tier US data releases, trade updates and broader market sentiment will play a pivotal role in Gold price action.
Daily technical analysis
The daily chart shows that the 14-day RSI has finally eased from the overbought region, returning to the bullish zone.
If dip-buying emerges and gathers strength, Gold could retest the record high at $3,708. A daily candlestick closing above that level will open doors toward the $3,750 region.
The immediate resistance, however, is seen at the $3,650 level.Alternatively, Gold could challenge this week’s low at $3,627 yet again if the corrective decline picks up.
Further down, the $3,600 round figure will be tested, below which the previous week’s low of $3,578 will be next on sellers’ radars.
Is GOLD primed to retest lifetime highs?
Gold is testing offers near $3,650 early Friday, holding Thursday’s late rebound from three-day lows near $3,627.
Gold eyes a fifth consecutive weekly gains despite the less dovish-than-expected US Fed policy announcements on Wednesday and Thursday’s encouraging US economic data, which helped the USD stage a decent recovery.
The Fed lowered interest rates by the expected 25 basis points , while the Summary of Economic Projections , the so-called Dot Plot chart, showed that the Fed policymakers project two additional rate cuts this year.
However, Fed Chairman Jerome Powell, in his post-policy meeting press conference, adopted a measured rhetoric on further policy easing. Powell called the rate cut a risk management policy action and maintained the bank’s ‘meeting-by-meeting’ stance.
Meanwhile, data on Thursday showed that Initial claims for state unemployment benefits decreased 33,000 to a seasonally adjusted 231,000 for the week ended September 13, partially reversing a surge in the prior week to the highest level since October 2021.The Philadelphia Federal Reserve Manufacturing Index surged to 23.2 in September, a significant leap from the estimated rebound of 2.3.
The USD’s upswing could also be attributed to a short-covering spree as markets perceived the recent declines as excessive.
Looking ahead, Gold could build on the rebound if the recent bullish momentum in the USD loses steam. However, the renewed US-China trade optimism could remain supportive of the Greenback, capping Gold’s move higher.
Additionally, Gold could also be influenced by the USD dynamics, induced by the USD/JPY pair in the aftermath of the no rate change decision expected by the Bank of Japan this Friday.
In the absence of top-tier US data releases, trade updates and broader market sentiment will play a pivotal role in Gold price action.
Daily technical analysis
The daily chart shows that the 14-day RSI has finally eased from the overbought region, returning to the bullish zone.
If dip-buying emerges and gathers strength, Gold could retest the record high at $3,708. A daily candlestick closing above that level will open doors toward the $3,750 region.
The immediate resistance, however, is seen at the $3,650 level.Alternatively, Gold could challenge this week’s low at $3,627 yet again if the corrective decline picks up.
Further down, the $3,600 round figure will be tested, below which the previous week’s low of $3,578 will be next on sellers’ radars.
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