. Gold Price Stagnates at $2,030 Ahead of US PCE Data

Gold Price Stagnates at $2,030 Ahead of US PCE Data

Gold Price Stagnates at $2,030 Ahead of US PCE Data

28 Feb 2024

Gold hovers at $2,030 with little movement as traders eagerly anticipate US PCE data scheduled for Thursday.

FUNDAMENTAL OVERVIEW:

The Gold price (XAU/USD) struggles to gain significant momentum on Wednesday, remaining within a multi-day trading range near $2,030. The potential for a significant reaction in the pair looms as traders await Thursday’s US PCE inflation data.

On Wednesday, the gold price (XAU/USD) persistently faces challenges gaining momentum, maintaining its position within a multi-day trading range during the early European session. The US Dollar (USD) strengthens as the consensus grows that the Federal Reserve (Fed) will postpone interest rate cuts until the June policy meeting, acting as a deterrent for the non-yielding gold. Additionally, the prevailing strong bullish sentiment in global equity markets limits upward potential for the safe-haven commodity.

Nevertheless, apprehension preceding Thursday’s significant US Personal Consumption Expenditures (PCE) Price Index restrains further optimism. Additionally, a recent decline in US Treasury bond yields prevents bearish traders from making aggressive moves against the gold price, thus restricting downside potential. Traders are focusing on the preliminary US Q4 GDP release in the early North American session. This, coupled with speeches from influential FOMC members and movements in US bond yields, will influence USD demand and generate short-term trading possibilities around XAU/USD.

GOLD TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Gold is currently trading within a up channel.

Gold is positioned below 10&20 Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Negative trend.

Immediate Resistance level: 2036.41

Immediate support level: 2021.97

HOW TO TRADE GOLD

After reversing its upward movement, Gold is currently trading within a range. At present, the price has reached a support level and is moving towards a resistance level. If the resistance level is breached, further upside movement is anticipated.

TRADE SUGGESTION- STOP BUY – 2031.67, TAKE PROFIT AT- 2044.67, SL AT- 2024.46.