Gold price (XAU/USD) struggles to gain any meaningful traction on Tuesday and oscillates in a narrow trading band, around the $2,320 region during the Asian session. Against the backdrop of the Federal Reserve’s (Fed) hawkish outlook last week, policymakers continue to argue in favor of only one rate cut in 2024. This remains supportive of elevated US Treasury bond yields and assists the US Dollar (USD) to attract some dip-buyers, which, in turn, caps the upside for the non-yielding yellow metal. Gold price, however, remains confined in a familiar range held over the past week or so and below the 50-day Simple Moving Average (SMA), warranting some caution before placing aggressive directional bets. The incoming US macro data pointed to signs of easing inflationary pressures and fueled speculation that the Fed will cut interest rates twice this year, in September and in December. This might keep a lid on the Greenback and help limit any meaningful decline for the XAU/USD.
Daily Digest Market Movers: Gold price struggles to lure buyers amid Fed rate-cut uncertainty
Technical Analysis: Gold price bulls need to wait for a breakout through the 50-day SMA resistance
From a technical perspective, the $2,333-2,336 region is likely to act as an immediate hurdle ahead of the 50-day SMA support, currently pegged near the $2,344-2,345 region. This is followed by the $2,360-2,362 supply zone, which, if cleared decisively, might prompt some short-covering rally and lift the Gold price to the $2,387-2,388 intermediate hurdle en route to the $2,400 mark. A sustained strength beyond the latter will suggest that the recent corrective slide from the all-time top set in May has run its course and should allow the XAU/USD to retest the $2,450 region.On the flip side, bearish traders need to wait for a sustained break and acceptance below the $2,300 mark before placing fresh bets around the Gold price. Some follow-through selling below the $2,285 horizontal support will confirm a breakdown and pave the way for deeper losses. The commodity might then accelerate the fall towards the next relevant support near the $2,254-2,253 region. The downward trajectory could extend further and eventually drag the XAU/USD towards the $2,225-2,220 support en route to the $2,200 round-figure mark.More By This Author:EUR/GBP Price Analysis: Piercing Line Candlestick Pattern Signals Short-Term Reversal After LowsGold Price Attracts Some Sellers On Hawkish Fed-inspired USD Strength Australian Dollar Closed The Week Soft; Markets Gear Up For RBA’s Decision
