-
Gold trades near record high.
-
Traders await PCE Price Index data for further clues.
-
Breakout above $2532 may extend rally towards $2557
-
Support aligned with $2516-$2511-$2506-$2501
-
Break below $2500 will be critical.
Gold continues to probe overhead resistance near all time high $2532 as traders lean on the edge between $2527-$2529.
Every dip is being used as consolidation and accumulation rather than distribution and the decline is quickly being followed up with a rebound that knocks at the door of record high waiting to breakout.
The set of factors that drive safe-haven demand for the yellow metal, continue to dig heels in favour of constant bullish stability.
Geo-political tensions on Middle East as also on Russia-Ukraine front continue to make new headlines every next one or two days.
Upcoming rate cut has been sounded by the Fed chief which keeps the bullish case strong.
If Gold declines, $2516-$2511-$2506-$2501 support levels will be area of interest for bulls to add long positions again.
A strong trigger could cause a quick break above the swing high $2532, prompting a spiking rally to next resistance $2543-$2557.
Major overhead resistance may be considered as $2582-$2588 before any exhaustion in momentum is signalled.
On the other hand, failure to clear through multiple attempts will indicate rejection from $2529-$2532 which will resume decline that goes smooth with $2516-$2511-$2506-$2501.
The views of the article are based on price action studies, technical analysis and chart-based studies. The author does not hold positions on items he writes about. The views expressed are for educational purposes and are not trading advice.
Recommended Content
Editors’ Picks
How will US Dollar react to July PCE inflation data? – LIVE
The US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge f inflation, for July. Market expectations of the Fed rate outlook could be impacted by PCE inflation data, driving the USD's action.
EUR/USD stays below 1.1200 ahead of EU inflation data
EUR/USD struggles to gather recovery momentum and trades in a narrow channel below 1.1200 on Friday after the data from the Eurozone showed that the annual HICP inflation softened to 2.2% in August. Investors await PCE inflation figures from the US.
GBP/USD advances toward 1.3200 ahead of US PCE data
GBP/USD is gaining ground in the European trading hours on Friday, approaching 1.3200 as risk sentiment remains in a sweeter spot. Traders, however, could refrain from placing further bets on the pair ahead of the all-important US PCE inflation data.
US core PCE inflation could help markets gauge how big will be Federal Reserve’s September rate cut
The United States (US) Bureau of Economic Analysis (BEA) will release the high-impact core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) preferred inflation gauge, on Friday at 12:30 GMT.
US core PCE inflation could help markets gauge how big will be Federal Reserve’s September rate cut
The United States (US) Bureau of Economic Analysis (BEA) will release the high-impact core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) preferred inflation gauge, on Friday at 12:30 GMT.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.