Commodities

Gold Bulls Pause as U.S. Data Weighs on Momentum—What’s Next for $2,600?

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Written By: Lilly Mwogah
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    Summary:
  • The pullback witnessed in Gold's price today was largely driven by the stronger-than-expected U.S. economic data...

Gold is trading at $2,646, slightly down by 0.35% on the day, retreating from a recent high of $2,686. The daily chart highlights the metal’s bullish momentum over the past few months, but recent price action suggests consolidation below the critical resistance at $2,686.

Gold Key Levels

  • Support at $2,633: This level has provided a base for price action over the past week. A break below it could lead to a move toward the next support zone at $2,600.
  • Resistance at $2,686: Gold is struggling to break through this level, with repeated rejections, indicating intense selling pressure in this zone.
  • Next Support Zones: Below $2,600, additional support lies at $2,472, a key pivot level during previous upward moves in August.
Gold Price Chart Analysis

Why is Gold Trending?

The pullback witnessed in Gold’s price today was largely driven by the stronger-than-expected U.S. economic data, which has bolstered the dollar and increased pressure on the precious metal. A recent report on U.S. employment showed better job creation numbers, raising the Federal Reserve’s expectations of further interest rate hikes. This has dampened the appeal of gold, a non-yielding asset, as higher interest rates make alternative investments like bonds more attractive.

In conclusion, XAUUSD remains in a critical consolidation phase. A decisive move above $2,686 could signal the continuation of the bullish trend, while a drop below $2,633 might indicate a deeper pullback toward $2,600 or lower. Traders should watch how economic data and Fed policies unfold in the coming weeks.

This post was last modified on Oct 04, 2024, 16:03 BST 16:03

Written By: Lilly Mwogah

Lilly Mwogah is a finance writer specializing in cryptocurrencies, forex, and indices. Passionate about simplifying complex financial topics, she creates engaging content for a broad audience. With a solid grasp of market trends and economic indicators, her work informs and empowers readers to navigate the dynamic finance world.

Published by
Written By: Lilly Mwogah