Gold prices are almost flat at the start of the European session, hovering around $3,750, which is emerging as a new support level. The precious metal is caught between opposing forces, with a flurry of stronger-than-expected US economic data and cautious remarks from some senior Federal Reserve officials fuelling a dollar rebound that is weighing on bullion. At the same time, diverging voices within the Fed are advocating a more dovish stance, raising expectations of more aggressive rate cuts — a dynamic that undermines the greenback and supports gold. Against this backdrop, the path of least resistance for the precious metal remains tilted to the upside, as ongoing geopolitical and economic uncertainty continues to enhance its safe-haven appeal. Nevertheless, today’s release of PCE inflation — the Fed’s preferred measure of price growth — could provide some short-term direction to either side, particularly if the reading deviates significantly from market expectations.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.