By NewsBlogger Gold prices saw a positive uptick on Friday, with traders awaiting clarity on the Federal Reserve’s stance on interest rate cuts, while market sentiment leans towards a higher probability of rate cuts starting in June.
At a glance
- Gold price saw a positive uptick on Friday, bouncing back from a dip towards $2,150.
- Market sentiment leans towards a higher probability of rate cuts starting in June.
- XAU/USD pair may record minor losses, potentially ending a three-week winning streak.
- Wall Street closed Friday’s session negatively, signaling a risk-off sentiment.
- Expectations for an upward breakout could propel gold toward the $2,200 level, forming a symmetrical triangle pattern.
The details
Gold price (XAU/USD) saw a positive uptick on Friday, bouncing back from a dip towards $2,150. The precious metal has been trading in a familiar range since the beginning of the week as traders await clarity on the Federal Reserve’s stance on interest rate cuts before making new investments.
The upcoming two-day FOMC monetary policy meeting set to commence next Tuesday is in focus.
The US Producer Price Index (PPI) surpassed expectations unexpectedly, leading to speculation that the Federal Reserve might postpone interest rate cuts.
Market Sentiment
Market sentiment is leaning towards a higher probability of rate cuts starting in June.
The drop in US Treasury bond yields has provided a boost for gold, while a slight increase in the US Dollar may limit significant gains for the commodity.
Traders are keeping a close eye on US economic data and bond yields to determine the direction of the USD. Additionally, broader market sentiment will impact short-term trading opportunities for gold.
Price Action
The XAU/USD pair seems ready to record minor losses, potentially ending a three-week winning streak.
The current range-bound price action is viewed as a bullish consolidation phase, with the lower boundary near the $2,152-2,150 level acting as immediate support.
A breach below this level could push gold towards the next support zone at $2,128-2,127, with a corrective slide possibly extending to the $2,100 mark.
On the upside, the $2,178-2,180 region has emerged as a strong resistance barrier for gold.
A breakthrough at this level could pave the way for a challenge towards the record peak around $2,195. Further buying beyond the $2,200 mark could trigger additional bullish momentum and resume the uptrend seen since the start of the month.
In a separate development, gold spot prices retreated from around the $2,180 level as investors’ expectations for the start of the Federal Reserve’s easing cycle were postponed due to robust US economic data.
The hotter-than-expected inflation figures justify Fed Chair Jerome Powell’s cautious approach towards monetary policy adjustments.
XAU/USD is currently trading at $2,157.66, reflecting a 0.20% decline.
Market Dynamics
Wall Street closed Friday’s session on a negative note, signaling a risk-off sentiment.
The rise in US Treasury yields after the Producer Price Index data kept gold under pressure throughout the day, despite resilient economic indicators.
The Fed’s report on improved industrial production in February and positive consumer sentiment data have further influenced market dynamics.
The US Dollar Index (DXY) has climbed to 103.45, while the XAU/USD pair continues to consolidate within the $2,160-$2,180 range.
Expectations for an upward breakout could propel gold towards the $2,200 level, with the formation of a symmetrical triangle pattern.
The Relative Strength Index (RSI) indicator suggests a temporary pause in buying momentum, with the potential for a pullback below $2,160. Key support levels to watch include the March 6 low at $2,123.80, followed by $2,100, $2,088.48, and $2,065.60.
In the Asian trading session, gold prices remained stable amidst concerns of possible interest rate hikes by the Federal Reserve following stronger-than-expected inflation data.
Meanwhile, copper prices surged to new 11-month highs due to expectations of reduced Chinese supplies.
Bullion prices faced pressure from a stronger dollar, with spot gold edging up to $2,163.98 per ounce.
Gold futures for April delivery steadied at $2,168.05 per ounce, set for weekly losses after retreating from record highs.
Worries surrounding the upcoming Fed meeting and robust inflation signals have weighed on gold, with traders cautious of hawkish signals from the central bank.
ANZ analysts highlighted short-term weakness in gold but maintained positive outlooks for the year.
Platinum futures rose 0.2% to $932.50 an ounce, while silver futures climbed 0.6% to $25.212 an ounce.
In the base metals sector, three-month copper futures surged 1.5%, crossing the $9,000 per ton mark for the first time since April 2023. The rally in copper prices was driven by reports of Chinese copper smelters planning production cuts, with Citi analysts optimistic about the metal’s potential upside, targeting $9,500 per ton by June 2024.
Overall, the global market sentiment towards gold and other precious metals remains influenced by economic data, Fed policy expectations, and broader market dynamics, with potential for further price movements based on upcoming events and indicators.
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| fxstreet.com |
|---|
| – Gold price (XAU/USD) gained positive traction on Friday, reversing a slide back closer to $2,150 – Precious metal remains confined in a familiar trading range since the beginning of the week – Traders seek clarity about the Federal Reserve’s rate cut path before placing fresh bets – Market focus will remain on the upcoming two-day FOMC monetary policy meeting starting next Tuesday – US Producer Price Index (PPI) was hotter-than-expected, fueling speculations that the US central bank may delay interest rate cuts – Markets are still pricing in a greater chance that the Fed will start cutting interest rates in June – Fresh leg down in US Treasury bond yields lends support to non-yielding Gold price – Modest US Dollar (USD) uptick may limit significant appreciation for the commodity – Traders look forward to US economic data and bond yields to influence USD price dynamics – Broader risk sentiment will contribute to short-term trading opportunities around Gold price – XAU/USD seems poised to register modest losses and snap a three-week winning streak – Range-bounce price action since the beginning of the week may be categorized as a bullish consolidation phase – Lower boundary of trading range near $2,152-2,150 area could protect immediate downside – Break below could drag Gold price to next support near $2,128-2,127 zone – Corrective slide could extend towards $2,100 round figure, acting as a strong base for XAU/USD – $2,178-2,180 region has emerged as an immediate strong barrier for Gold price – Clearing this barrier could allow Gold price to challenge record peak around $2,195 – Follow-through buying beyond $2,200 mark will trigger bullish traders and resume uptrend since beginning of the month |
| fxstreet.com |
|---|
| – Gold spot retreated from around the $2,180 area on Friday – Market players’ hope for the beginning of the US Federal Reserve’s easing cycle has been delayed due to strong US economic data – Hotter-than-expected inflation figures justify Fed Chair Jerome Powell’s remarks to be patient and stick to the current monetary policy stance until the disinflation process evolves – XAU/USD trades at $2,157.66, down 0.20% – Wall Street is set to finish Friday’s session on the back foot, reflecting a risk-off mood – The rise of US Treasury yields after Thursday’s Producer Price Index (PPI) data kept XAU/USD offered in the European session and toward the end of the trading day – The yellow metal remained under pressure even though US economic data failed to move the needle – The Fed revealed that Industrial Production improved in February – University of Michigan Consumer Sentiment showed that Americans remain optimistic about the economic outlook – XAU/USD treads water as the US 10-year Treasury bond yield surges one basis point to 4.308% – The US Dollar Index (DXY) climbs 0.09% to 103.45 – Gold’s uptrend remains intact with the pair consolidating near the $2,160-$2,180 area – Expectations for an upside break could lift the XAU/USD toward the $2,200 figure as a symmetrical triangle forms – The Relative Strength Index (RSI) indicator exiting from overbought conditions suggests that buyers are taking a breather – If buyers break the top of the range, they would challenge the current year-to-date (YTD) high of $2,195.15 – A drop below $2,160 might pave the way for a pullback – The first key support level would be the March 6 low of $2,123.80, followed by $2,100, followed by the December 28 high at $2,088.48 and the February 1 high at $2,065.60 |
| uk.investing.com |
|---|
| – Gold prices remained stable in Asian trade on Friday – Stronger-than-expected inflation data raised concerns about potential interest rate hikes by the Federal Reserve – Copper prices surged to new 11-month highs due to expectations of tighter Chinese supplies – Bullion prices were pressured by a stronger dollar – Spot gold rose 0.1% to $2,163.98 an ounce – Gold futures expiring in April steadied at $2,168.05 an ounce – Gold prices were set for weekly losses after falling from record highs – Pressure on gold came from concerns about the upcoming Fed meeting and strong inflation signals – Traders feared hawkish signals from the Fed due to inflation – ANZ analysts noted that gold may see near-term weakness but still had positive factors for the year – Platinum futures rose 0.2% to $932.50 an ounce – Silver futures rose 0.6% to $25.212 an ounce – Three-month copper futures surged 1.5% on Friday – Copper crossed the $9,000 a ton level for the first time since April 2023 – Copper futures were set to add over 5% for the week – Copper rally was triggered by reports of Chinese copper smelters planning production cuts – Citi analysts were optimistic about copper’s potential upside, targeting $9,500 a ton by June 2024 |
