Highlights
Gold gained amid Fed concerns about rates and a 0.3% decline in the US dollar. The precious metal’s price has marginally increased due to falling US dollars and bond yields, despite concerns about the Federal Reserve’s interest rate plans. This could cause it to potentially decrease for a fourth consecutive week.

A strong US economy increases the likelihood of Federal Reserve interest rate increases this year. The 10-year Treasury yields fell, making gold more appealing to foreign buyers, limiting gold demand.

The U.S. labour market trends and Powell’s speech have an impact on global economic emotions. The Fed is divided, prioritising inflation, and Powell’s speech is anticipated.

Gold traders analyze global concerns, including China Evergrande’s bankruptcy filing and Japan’s inflation rates. The gold market remains fragile and may face difficulties without significant economic indices changing.

Technical Assessment

With a 4-hour price of $1893.69, gold is currently slightly bullish compared to its previous closing of $1892.24. The metal’s price is currently less than the 200-4H moving average of $1939.09, which denotes a short-term bearish mood.

The gold market is trading below the 1910.00 50-4H moving average, indicating a gloomy outlook. The 14-4H RSI reading is 42.90, just below the neutral 50 level. The price is circling the primary support zone between 1893.00 and 1885.00. In the short term, the market appears bearish, but it’s susceptible to a short-covering rebound in the near term.

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