Gold Analysis
Afternoon Session: Gold acceptance above 62250 is critical to sustain the rebound, will it?
Highlights:
- Gold MCX prices look to get immediate support at 61400 and immediate resistance at 62100.
- Limited bounce can be seen towards 2030-2032 levels in Comex.
- USD/INR pair trading within a range between 82.80 and 83.40.
Overview:
Gold prices strengthened, benefiting from a weakening dollar and increased safe-haven demand amid the escalating conflict in the Middle East. Investors also sought further clarity on the U.S. Federal Reserve's future interest rate trajectory. Jobless claims data in the U.S. indicated a decline to the lowest level since late 2022, suggesting robust job growth in January. Atlanta Federal Reserve President Raphael Bostic expressed openness to lower rates sooner than initially anticipated, contingent on the pace of inflation decline. However, he outlined the baseline expectation for rate cuts to commence in the third quarter.
Outlook:
Gold is currently displaying a bearish pattern on the 4Hr timeframe, signaling potential downward movement. If prices close below the 23.6% Fibonacci level at 62256, the bearish outlook strengthens, with a target set at the 50.0% Fibonacci level, around 60275. Traders should closely monitor the current key levels and can wait for the rise till 62200-250 range to take a fresh sell position for confirmation and consider adopting a cautious stance as the market suggests a shift towards a bearish trend in the near term.
Support and Resistance Levels:
