Starting with the weekly timeframe price action is currently testing the 50% retracement level from last week's swing high. This is known a common pivot point.
Taking a look at the daily chart below, price action remains elevated above the 2350 psychological support level. RSI also holds strong above 50.
Lastly on the 4 hour timeframe, the technical backdrop is similar to the daily.
== Fundamental Overview ==
Markets are pricing in a 77% probability of a rate cut by the Fed in September, per the FedWatch Tool from the CME Group. We anticipate another cut by December.
The headline Nonfarm Payrolls (NFP) climbed by 206,000 in June, surpassing the market forecast for a 190,000 gain; but, April and May readings were dramatically lowered down by a combined 111,000. This resulted in a disappointing US labor market data on Friday, which confirmed a Fed rate decrease in September. As anticipated, average hourly earnings increased 3.9% annually, reaching a record low since the second quarter of 2021.
The US dollar and the yield on Treasury bonds could suffer as a result of Fed Chair Powell's remarks, which could support dovish Fed forecasts and push the price of gold to all-time highs beyond $2,400. Powell testifies before the Senate Banking Committee for two days, starting later on Tuesday and concluding on Wednesday before the House Financial Services Committee.
In addition, a number of other Fed policymakers are probably going to speak on Tuesday, which may influence gold price movement in the midst of a US schedule devoid of data.
Fears over China's gold demand and profit-taking caused the price of gold to fall on Monday. After gold failed at the $2,400 mark, traders turned to profit-taking, and some moved ahead of Powell's testimony and this week's US inflation data.
China possessed 72.80 million troy ounces of gold at the end of June, according to figures released by the People's Bank of China (PBOC) on Sunday. This amount remained constant from the end of May. The PBOC did not add gold to its reserves for the second consecutive month.
Taking a look at the daily chart below, price action remains elevated above the 2350 psychological support level. RSI also holds strong above 50.
Lastly on the 4 hour timeframe, the technical backdrop is similar to the daily.
== Fundamental Overview ==
Markets are pricing in a 77% probability of a rate cut by the Fed in September, per the FedWatch Tool from the CME Group. We anticipate another cut by December.
The headline Nonfarm Payrolls (NFP) climbed by 206,000 in June, surpassing the market forecast for a 190,000 gain; but, April and May readings were dramatically lowered down by a combined 111,000. This resulted in a disappointing US labor market data on Friday, which confirmed a Fed rate decrease in September. As anticipated, average hourly earnings increased 3.9% annually, reaching a record low since the second quarter of 2021.
The US dollar and the yield on Treasury bonds could suffer as a result of Fed Chair Powell's remarks, which could support dovish Fed forecasts and push the price of gold to all-time highs beyond $2,400. Powell testifies before the Senate Banking Committee for two days, starting later on Tuesday and concluding on Wednesday before the House Financial Services Committee.
In addition, a number of other Fed policymakers are probably going to speak on Tuesday, which may influence gold price movement in the midst of a US schedule devoid of data.
Fears over China's gold demand and profit-taking caused the price of gold to fall on Monday. After gold failed at the $2,400 mark, traders turned to profit-taking, and some moved ahead of Powell's testimony and this week's US inflation data.
China possessed 72.80 million troy ounces of gold at the end of June, according to figures released by the People's Bank of China (PBOC) on Sunday. This amount remained constant from the end of May. The PBOC did not add gold to its reserves for the second consecutive month.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.