Gold Price: Whenever uncertainty increases in the world, the first thing a person runs towards is the thing that gives him comfort, and often that is “gold”. A similar situation is being seen these days as well. On Wednesday, a slight increase was seen in the gold prices (XAU/USD) in the Asian market.
Gold got some relief from the weak dollar
Federal Reserve Chairman Jerome Powell has made it clear in his recent statements that the US will be on a wait and watch policy regarding interest rates for the time being. But it was also said that if inflation and job hiring weaken, then the rate cut can be done earlier. After this statement, the US dollar reached close to a one-week low, which has given relief to non-interest-bearing assets like gold.
The ongoing uncertainty amid the Israel-Iran conflict has increased the anxiety
However, this rise cannot be called completely “bullish” because the world is still grappling with the uncertainty of the ongoing conflict between Israel and Iran. Both countries have announced a temporary ceasefire, but the recent attack on Iran’s capital, Tehran and Iran’s retaliatory missile strike have raised questions about the stability of this peace. This is why investors are still showing interest in gol,d considering it a safe option.
What are the technical charts indicating
If we look from a technical point of view, Tuesday’s decline indicated that the price of gold has broken the trend channel that was moving in the upward direction for a short time. Looking at the chart, it appears that now there is more pressure in the downward direction, and prices may fall once again. If prices go below $3,300, it can fall to $3,245 or even $3,200.
However, if for some reason the price of gold stays above $3,368, it could also be the beginning of a new rise that could take it to $3,400. But at present, the market sentiment remains a little cautious.
What will be the focus next
Now investors’ eyes are fixed on Fed Chairman Powell’s second testimony, as well as the US Q1 GDP data, durable goods orders and weekly unemployment data coming on Thursday. But the biggest thing is that the US Personal Consumption Expenditure (PCE) Price Index is going to come on Friday, which will determine how serious the Fed is about cutting rates.
Disclaimer: This article is written based only on general information and current market conditions. Any information given in it should not be considered as investment advice. Please consult your financial advisor before investing.
Also Read:
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Today Gold Price: Fluctuating Gold and Silver Rates, Check Today’s Price and Key Market Insights
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