Gold Analysis
Afternoon Session: Gold prices declined as the dollar strengthened and Treasury yields rose, rejected fib 38.2% level on 1hr chart, more drop ahead?
Highlights:
- Gold prices declined as the dollar strengthened and Treasury yields rose, diminishing hopes of an imminent Federal Reserve rate cut.
- The U.S. added more jobs than anticipated in December, challenging expectations of a March rate cut.
- Gold prices look to get support at 2015$ and resistance at 2052$.
Overview
Gold prices declined as the dollar strengthened and Treasury yields rose, diminishing hopes of an imminent Federal Reserve rate cut. The U.S. added more jobs than anticipated in December, challenging expectations of a March rate cut. Investors await Thursday's U.S. consumer price inflation report, with a 69% likelihood, according to CME Fed Watch, of a rate cut in March.
MCX gold chart currently exhibits an overall bearish momentum. However, there is a potential for price to make a bullish rise towards the 1st resistance. The 1st resistance level at 62501 is identified as an overlap resistance that aligns close to the 50.00% Fibonacci retracement level. Higher up, the 2nd resistance level at 62639 is noted as a swing-high resistance that aligns with the 61.80% Fibonacci projection level, suggesting a potential barrier for further upside movement.
To the downside, the 1st support level at 62195 is identified as an overlap support that aligns with the 61.80% Fibonacci retracement level. Further below, the 2nd support level at 61909 is marked as a swing-low support, further reinforcing its importance as a key support level.
Support and Resistance Levels:
