GOLD Analysis
Afternoon: Gold Prices Decline Amid Profit-Taking and Economic Uncertainty
Highlights:
- Gold fell below $2,900 due to profit-taking and anticipation of U.S. inflation data.
- Trade tensions increased as Trump threatened tariffs on Canadian dairy and timber, while China's tariffs took effect.
- Sell on jump around $2,905, targeting $2,880, with a stop loss above $2,922.
Overview:
Gold prices fell below $2,900 per ounce as investors engaged in profit-taking while awaiting key U.S. inflation data for insights into the Federal Reserve’s next policy move. The market remains cautious amid rising economic uncertainties, trade tensions, and upcoming economic data releases.
Market Analysis
- Price Movement & Key Drivers:
- Gold saw a decline below $2,900 as traders booked profits ahead of U.S. inflation data due later this week.
- The uncertainty surrounding Federal Reserve policy decisions influenced investor sentiment.
- President Donald Trump’s threats of retaliatory tariffs on Canadian dairy and timber added to market concerns.
- The U.S. postponed 25% tariffs on select Canadian and Mexican commodities for a month, while China's tariffs on U.S. agricultural products took effect today.
- Federal Reserve Chair Jerome Powell reaffirmed that there is no immediate need to lower interest rates, despite economic uncertainties.
- Key Economic Data to Watch:
- NFIB Small Business Index – Measures business optimism, providing insights into economic health.
- JOLTS Job Openings – Offers a view of labor market strength and hiring trends.
Technical Outlook
- Support & Resistance Levels:
- Gold Spot: Support at $2,878, Resistance at $2,922.
- Gold MCX: Support at ₹84,900, Resistance at ₹85,900.
- Trading Strategy:
- Action: Sell on price jumps around $2,905.
- Target: $2,880.
- Stop Loss: Above $2,922.
Market Outlook & Conclusion
Gold remains in a critical price zone, with heightened volatility expected due to upcoming economic data releases and global trade tensions. Traders should adopt a cautious approach with tight stop losses, monitoring developments in U.S. monetary policy and international trade relations.
Support and Resistance Levels:
