Gold price today (XAU/USD) faced fresh selling during the Asian session on Tuesday. It reversed the previous day’s gains, nearing the crucial 50-day Simple Moving Average (SMA). As the US Dollar (USD) gained traction, investor attention turned to the Federal Reserve’s (Fed) rate decisions.
Market Sentiment and USD Influence
Markets are anticipating a rate cut by the Fed in September and December. This speculation was bolstered by the US ISM PMI report, indicating the manufacturing sector contracted for the third consecutive month in June. Additionally, the prices paid by factories for inputs hit a six-month low. These factors, along with declining US Treasury bond yields, might limit the USD’s gains. Meanwhile, economic challenges in China, geopolitical risks, and political uncertainties could support gold prices.
Key Events to Watch
Traders are cautious ahead of Fed Chair Jerome Powell’s speech on Tuesday and the release of the FOMC meeting minutes on Wednesday. Additionally, the Nonfarm Payrolls (NFP) report on Friday will be crucial. These events will significantly influence the sentiment around the USD and gold prices.
Daily Digest Market Movers
- Gold Price Today Depressed amid sustained USD buying, awaiting Powell’s speech.
- US Macro Data Monday’s data reinforced expectations of Fed rate cuts in September and December, leading to short-covering in gold.
- ISM Manufacturing PMI Contracted for the second month, missing estimates.
- Employment and Prices Paid Index Showed a decline, supporting the rate cut expectations.
- US PCE Price Index Indicated the lowest annual inflation rate in over three years.
- US Treasuries and USD US Treasuries sold off, and USD short-covering limited gold’s upside.
Technical Analysis
Gold prices are struggling to surpass the 50-day SMA, currently around $2,337-$2,338. A break above this could lead to the next resistance at $2,360-$2,365 and potentially towards the $2,400 mark. On the downside, support is near the $2,319-$2,318 area, with further support at $2,300 and $2,285. Failure to hold these levels could see a decline to the 100-day SMA near $2,258 and possibly to $2,225-$2,220.
Conclusion
As the gold market navigates through various economic indicators and key events, traders should stay informed about the latest updates. For more insights, check out our daily updates on Daily Gold Signal.
For comprehensive analysis and daily gold updates, visit Daily Gold Update.
