Gold Price Remains Stuck Below Resistance are currently stuck below a key resistance level, and the US Dollar is gaining strength. This blog will explain what’s affecting gold prices, key levels to watch, and what might happen next.
Market Overview
Gold Price Remains Stuck Below Resistance have been unable to rise above $2,400. The Middle East tensions are making investors prefer the US Dollar as a safe investment.
Geopolitical concerns are overshadowing the upcoming Federal Reserve meeting on Wednesday. Recent data, like the Personal Consumption Expenditures (PCE) Prices Index for June, shows inflation is still close to the Fed’s 2% target. Investors hope the Fed will start easing rates in September and provide more guidance after this week’s meeting.
On Tuesday, we’ll get important reports, including the US JOLTs Job Openings for June and the Conference Board’s Consumer Sentiment Index for July. These reports might show a slight weakening, supporting expectations for a rate cut in September.
Daily Market Movers
Geopolitical Tensions
Rising tensions, especially in Lebanon, are pushing investors towards the US Dollar, putting pressure on gold prices resistance.
US Treasury Yields and Fed Predictions
US Treasury yields are falling, as people expect the Fed to cut rates soon. The CME Group’s Fed Watch tool suggests a 95% chance the Fed will keep rates steady this Wednesday and a 100% chance of a rate cut in September.
Consumer Sentiment and Job Openings
The Conference Board is expected to report a drop in the Consumer Sentiment Index to 99.5 from 100.4 last month. The JOLTs Job Openings report is also likely to show a decrease to 8.03 million in June from 8.14 million in May.
Technical Analysis
Gold’s bounce from last week’s low of around $2,350 has hit resistance at $2,400. This level is important as it matches the 100-period Simple Moving Average (SMA) on the 4-hour chart and a downtrend from July 17. Despite this, the downside is limited for now.
Momentum and Targets
The Relative Strength Index (RSI) shows some positive momentum, with $2,380 as a current support. If gold falls below $2,380, the next support is $2,350. A rise above $2,400 could shift focus to $2,430.
Gold prices resistance are facing challenges from geopolitical tensions and economic data. For the latest updates and detailed analyses, visit Daily Gold Signal’s updates here and explore more in the daily gold updates category here.
