GOLD Analysis
Afternoon: Gold Prices Dip as Dollar Strengthens Amid Fed Rate Cut Speculation
Highlights:
- Gold prices declined as dollar strengthened; Fed rate cut speculation heightened.
- Market anticipates support at $2290, resistance at $2335 for gold; MCX levels at 70200 (support) and 71000 (resistance).
- Recommended strategy: Sell on jump near $2320, targeting $2295, with stop loss below $2335.
Introduction:
Gold prices experienced a decline recently as the dollar gained strength, with traders eagerly awaiting insights from Federal Reserve officials regarding potential interest rate cuts in the United States. The market sentiment was influenced by subdued U.S. employment growth figures for April, reinforcing expectations of forthcoming rate adjustments. Despite a slight correction in prices, physical gold demand in India remained restrained, while Chinese premiums declined due to sluggish holiday demand.
Key Economic Data:
Scheduled economic releases include Spanish Unemployment Change, German Final Services PMI, Sentix Investor Confidence, and Euro Zone PPI m/m.
Technical Analysis:
Gold prices are anticipated to find support around $2290 and face resistance near $2335. In the MCX, support is expected at 70200 and resistance at 71000.
Actionable Insights:
Considering the current market dynamics, a strategy to sell on jumps around $2320 is suggested, targeting $2295, with a stop loss set below $2335.
Conclusion:
The interplay of factors such as the dollar's strength, Fed rate cut speculation, and global demand trends continues to shape the trajectory of gold prices. Traders are advised to monitor key economic data releases and geopolitical developments closely for potential market shifts.
Support and Resistance Levels:
