Gold Daily | Gold Rebounds to $2,620 Amid Fed's Rate Signals and Market Uncertainty
Thursday, Dec 19, 2024 7:00 am ET
1min read 【Latest Gold Price and Recent Trends】
Gold prices have rebounded to around $2,620 per ounce after a significant drop below $2,600 due to the Federal Reserve's hawkish stance, despite early trading reaching a low of $2,583. Market reactions are driven by the Fed's indication of a slower pace in future rate hikes.
【Technical Analysis】
On the daily chart, gold initially broke the $2,600 support but managed to recover slightly. Buyers are targeting the resistance at $2,721, while sellers look for opportunities to press below $2,600 again. Key support levels are at $2,583 and further down at $2,537. On the hourly chart, bearish momentum is defined by a minor downtrend, with sellers focusing on breaking the support, while buyers aim to push above for a bullish move towards $2,660.
【Market Sentiment and Economic Background】
The Federal Reserve's recent decision to cut interest rates by 25 basis points and its cautious stance on future rate cuts have affected gold prices. The market is reacting to the Fed's signals of a potential slowdown in monetary easing, with a notable impact on the dollar and bond yields. Geopolitical risks and upcoming U.S. economic data, such as GDP and PCE, remain crucial for gold's direction. Despite the dollar's strength, safe-haven demand for precious metals persists due to ongoing market uncertainties.
【Analyst Opinions】
Analysts note that the Fed's data-dependent decision-making adds risk, particularly if Trump's policies trigger inflation. Short-term gold price movements are influenced by data releases, with potential pressure if PCE data rises to 3% or above. The resistance level at $2,655 is critical for reversing the bearish trend, and failing to maintain above this level could lead to downward pressure towards $2,583. Analysts also highlight the significance of upcoming U.S. economic data in shaping market expectations and influencing gold's trajectory.
Gold prices have rebounded to around $2,620 per ounce after a significant drop below $2,600 due to the Federal Reserve's hawkish stance, despite early trading reaching a low of $2,583. Market reactions are driven by the Fed's indication of a slower pace in future rate hikes.
【Technical Analysis】
On the daily chart, gold initially broke the $2,600 support but managed to recover slightly. Buyers are targeting the resistance at $2,721, while sellers look for opportunities to press below $2,600 again. Key support levels are at $2,583 and further down at $2,537. On the hourly chart, bearish momentum is defined by a minor downtrend, with sellers focusing on breaking the support, while buyers aim to push above for a bullish move towards $2,660.
【Market Sentiment and Economic Background】
The Federal Reserve's recent decision to cut interest rates by 25 basis points and its cautious stance on future rate cuts have affected gold prices. The market is reacting to the Fed's signals of a potential slowdown in monetary easing, with a notable impact on the dollar and bond yields. Geopolitical risks and upcoming U.S. economic data, such as GDP and PCE, remain crucial for gold's direction. Despite the dollar's strength, safe-haven demand for precious metals persists due to ongoing market uncertainties.
【Analyst Opinions】
Analysts note that the Fed's data-dependent decision-making adds risk, particularly if Trump's policies trigger inflation. Short-term gold price movements are influenced by data releases, with potential pressure if PCE data rises to 3% or above. The resistance level at $2,655 is critical for reversing the bearish trend, and failing to maintain above this level could lead to downward pressure towards $2,583. Analysts also highlight the significance of upcoming U.S. economic data in shaping market expectations and influencing gold's trajectory.
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