XAU/USD outlook: Gold edges higher from daily cloud top as markets await release of US data
|XAU/USD
Gold price rose on Friday, as traders collected some profits from sharp fall in past two days (down nearly 3%), with strong acceleration lower on Thursday being sparked by upbeat US Q2 GDP numbers.
Strong technical support, provided by the top of daily Ichimoku cloud, repeatedly contained attacks, keeping the downside protected for now.
Initial signs of recovery come from fresh positive momentum and oversold stochastic on daily chart, with near term action being underpinned by daily cloud however, more work at the upside will be needed to improve the outlook and verify positive signal.
Bulls need to clear $2390/$2400 zone (20DMA / psychological) to signal a higher base ($2554) to spark recovery continuation and shift near-term focus higher.
On the other hand, gold is on track for the second consecutive weekly loss, with weakening weekly studies, likely to keep the downside vulnerable.
US PCE data (due later today) mark Fed’s key inflation measure and expected to provide more details about the start of rate cutting cycle by the US central bank, which is expected to generate fresh direction signal for the yellow metal.
Res: 2379; 2390; 2400; 2413.
Sup: 2363; 2347; 2338; 2324.
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