Gold prices experienced a modest increase of 0.30% on Tuesday, driven by a combination of factors. The decline in US Treasury yields and the weakening of the US dollar played a significant role in this uptick. Traders are now eagerly anticipating the release of crucial US inflation data, which is expected to have a major impact on the market sentiment in the coming days. Moreover, the upcoming presidential debate between Kamala Harris and Donald Trump is likely to add further volatility to the markets.
From a technical standpoint, Gold (XAUUSD) is currently trading at $2,514, showing signs of recovery from a recent low of $2,500. Analysts predict a high probability of a Federal Reserve interest rate cut, with a 67% chance of a 25 basis point reduction and a 33% likelihood of a 50 basis point cut. The recent US jobs report revealed lower-than-expected job growth, although the unemployment rate saw a slight decrease. This development has provided some relief to the Federal Reserve.
Analysts are setting their sights on a bearish direction for Gold prices, with a target of $2,495.75. The current market sentiment suggests a potential reversal in the near future, with opportunities for bearish entry points. Technical indicators, such as the SBR pattern on the 1-hour timeframe, support the notion of a downward trend for Gold. Traders are closely monitoring the situation and preparing for possible shifts in market dynamics.
The recent movements in Gold prices and the underlying market influencers point towards a cautious outlook for traders. With impending economic data releases and political events on the horizon, the future trajectory of Gold remains uncertain. It is essential for investors to stay informed, remain vigilant, and adapt their strategies accordingly to navigate the volatile landscape of the precious metals market.
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