Gold price and Central Bank decisions (XAU/USD) have recently gone up a bit after a small drop on Monday. The metal is recovering slightly in Tuesday’s trading, facing resistance around $2,390. This rise is due to fewer worries about global conflicts and the upcoming central bank decisions.
Market Overview: Gold Price Trends
Gold Price and Central Bank Decisions is improving after Monday’s decline. Concerns about a major conflict in the Middle East have eased. Israeli officials want to respond to recent attacks but avoid a bigger war, which has helped stabilize the market and reduced the strength of the US Dollar (USD).
Impact of Central Bank Decisions
People are watching the Federal Reserve announcement on Wednesday. It is expected that the Fed will keep interest rates the same. However, comments from Fed Chair Jerome Powell will be important. With lower inflation and a slowing job market, Powell might suggest that the Fed could start easing measures before December. This could weaken the USD and boost gold prices.
The Conference Board is expected to report a slight drop in the Consumer Sentiment Index for July, from 100.4 to 99.5. Also, US JOLTS Job Openings are likely to fall from 8.14 million in May to 8.03 million in June.
Technical Analysis: Key Levels
XAU/USD trends is correcting after reaching near $2,500 in mid-July. Support is around $2,360, a key level from the recent price rise. The recent higher low suggests the correction might be ending.
The 4-hour Relative Strength Index (RSI) is flat at 50, showing no strong direction. For gold to move above $2,400, it needs more positive momentum. A dovish Fed and weak economic data could push prices to $2,430. On the downside, support levels are at $2,350 and $2,320.
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