Gold price climbs (XAU/USD) rises during the Asian session on Wednesday, continuing its rebound from the $2,319-$2,318 support zone. Currently, gold is near the top of a short-term trading range, waiting to surpass the 50-day Simple Moving Average (SMA) resistance before further gains. The Federal Reserve (Fed) Chair Jerome Powell’s dovish remarks on Tuesday, along with global economic slowdown fears and geopolitical tensions, support gold’s upward movement.
Market Sentiment and Fed’s Influence
The gold price climbs is gaining, but traders are cautious, awaiting more information on the Fed’s future policy. The release of the FOMC meeting minutes later in the US session will be crucial in shaping the US Dollar’s (USD) near-term dynamics and gold’s direction. Additionally, traders will monitor the US economic reports, including the ADP employment report and ISM Services PMI. Given the current fundamentals, the gold price is expected to rise, with any dips seen as buying opportunities.
Fed Chair Powell’s Remarks
Fed Chair Powell expressed satisfaction with inflation progress but wants more confidence in its decline before cutting rates. Markets are anticipating a rate cut in September and possibly another in December. This speculation has led to a retreat in US Treasury bond yields, weakening the USD and supporting gold prices. Despite an increase in US job openings as per the JOLTS report, market focus remains on the Fed’s rate path.
Awaiting FOMC Minutes and Key Economic Data
Investors are keenly waiting for the FOMC meeting minutes for further insights, ahead of the US monthly employment report on Friday. Wednesday’s economic releases, including the ADP employment report and ISM Services PMI, will also impact the USD and create short-term opportunities in the gold market.
Technical Analysis
From a technical standpoint, gold’s recent range-bound action shows trader indecision. Neutral daily chart oscillators advise caution. The 50-day SMA near $2,340 is an immediate resistance, followed by the $2,365-$2,370 region. Clearing these could push gold to $2,400 and potentially challenge the all-time high near $2,450. On the downside, $2,319-$2,318 is strong support, with a break below targeting $2,300 and potentially falling further to the $2,258 region.
Conclusion
The gold price continues to climb, driven by market uncertainty and anticipation of the FOMC minutes. Traders are closely watching the Fed’s actions and global economic indicators for cues. For more updates on gold prices, visit Daily Gold Signal. For daily gold updates, check here.
