Gold Daily | Gold Rebounds to $2,605 on Weaker Dollar Amid Fed's Hawkish Stance and Economic Uncertainty
Saturday, Dec 21, 2024 7:00 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices rebounded to $2,605 per ounce, recovering from earlier losses. The recent increase is supported by a weaker dollar and potential for interest rate cuts, despite the Fed's hawkish stance suggesting a rate cut slowdown.
【Technical Analysis】
Gold is finding support around $2,583.79. Despite the recent rebound, prices remain below the pivot level of $2,616.62, indicating mild bearish sentiment unless this level is breached. Immediate resistance is at $2,651.28, with potential gains to $2,690.98 if momentum strengthens. The RSI indicates oversold conditions, suggesting a rebound is possible, while the 50 EMA at $2,640.41 indicates ongoing downward pressure.
【Market Sentiment and Economic Background】
The Fed's hawkish outlook, supported by strong U.S. economic data including a 3.1% GDP growth and low unemployment claims, strengthens the dollar and raises Treasury yields, which limits gold's recovery potential. The anticipation of the PCE inflation data, a critical Fed inflation gauge, keeps markets on edge. Additionally, looming U.S. government shutdown risks enhance gold's appeal as a safe haven.
【Analyst Opinions】
Analysts suggest that the recent dip in gold prices presents a buying opportunity for long-term investors, given ongoing economic uncertainties and potential government shutdowns. However, the strong economic data and Fed's stance could keep upward pressure on yields and the dollar, challenging gold's price growth.
Gold prices rebounded to $2,605 per ounce, recovering from earlier losses. The recent increase is supported by a weaker dollar and potential for interest rate cuts, despite the Fed's hawkish stance suggesting a rate cut slowdown.
【Technical Analysis】
Gold is finding support around $2,583.79. Despite the recent rebound, prices remain below the pivot level of $2,616.62, indicating mild bearish sentiment unless this level is breached. Immediate resistance is at $2,651.28, with potential gains to $2,690.98 if momentum strengthens. The RSI indicates oversold conditions, suggesting a rebound is possible, while the 50 EMA at $2,640.41 indicates ongoing downward pressure.
【Market Sentiment and Economic Background】
The Fed's hawkish outlook, supported by strong U.S. economic data including a 3.1% GDP growth and low unemployment claims, strengthens the dollar and raises Treasury yields, which limits gold's recovery potential. The anticipation of the PCE inflation data, a critical Fed inflation gauge, keeps markets on edge. Additionally, looming U.S. government shutdown risks enhance gold's appeal as a safe haven.
【Analyst Opinions】
Analysts suggest that the recent dip in gold prices presents a buying opportunity for long-term investors, given ongoing economic uncertainties and potential government shutdowns. However, the strong economic data and Fed's stance could keep upward pressure on yields and the dollar, challenging gold's price growth.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
_09e3b4291747294475508.jpg)
