Gold Price Rebound Factors is trading around $2,370 per ounce after bouncing back from the 50-day Simple Moving Average (SMA). This recovery follows a steep drop from the previous day, influenced by recent US economic data.
Impact of Economic Data on Gold
The Federal Reserve might cut interest rates by 0.25% in September, reducing the upper limit from 5.50% to 5.25%. More rate cuts are expected later in the year, depending on the PCE data. A lower PCE reading might lead to more rate cuts, while a higher reading could stop them.
Market Sentiment and Demand
Gold Price Rebound Factors is facing pressure due to an imbalance in long positions and weaker demand from Asia. Analysts at TD Securities say that when there are too many long positions in gold, a sell-off often follows. Additionally, lower demand from Asian central banks, who use gold to protect against currency fluctuations, is adding to the pressure.
Technical Analysis: Support at 50-Day SMA
Gold has found support at the 50-day SMA, around $2,360. If the price falls below this level, it might drop further to the 100-day SMA at about $2,320.
The Moving Average Convergence Divergence (MACD) indicator has moved below its signal line, adding to the bearish signal. MACD is useful for spotting price changes in sideways markets.
If gold breaks above the all-time high of $2,483, it could signal a further price increase. This move might push gold towards a target of $2,555-$2,560, based on the 0.618 Fibonacci ratio.
Gold’s rebound from the 50-day SMA shows the importance of technical analysis in tracking market trends. Keep an eye on economic reports and technical indicators for more insights into gold’s price movements.
For the latest updates on gold prices and market trends, visit Daily Gold Signal and check the Daily Gold Update.
