- Gold price preserves gains amid renewed US Dollar weakness.
- The latest recovery mode in the US Treasury bond yields caps Gold price upside.
- Focus shifts to the global Purchasing Manager’s Index for fresh cues
- Gold price needs to break the $1,942 barrier for a fresh uptrend.
Gold price is consolidating the latest uptick to near nine-month highs, as bulls take a pause contemplating the next move. Gold price is holding firmer so far this Tuesday, having witnessed good two-way trades a day before.
Eurozone, United States PMI data in focus
Amidst the US Federal Reserve (Fed) ‘blackout period’ and China’s Lunar New Year holidays, the focus is now shifting back to the fundamentals. Therefore, preliminary S&P Global Manufacturing and Services Purchasing Manager’s Index from the Eurozone and the United States. The business surveys will likely provide signals on the state of the global economy, which could have a significant impact on the expectations of a potential recession. Should the PMI reports across the euro area and from the US hint at increasing odds of a global recession, investors could scurry into the safe-haven US Dollar, triggering a sharp retracement in the Gold price from higher levels.
Indian Gold demand to be hit by the record futures price
Citing dealers, Reuters reported on Tuesday, Indian Gold futures hit a fresh all-time high but investors remain wary that the price surge could dampen demand in the world's second-biggest consumer of the precious metal. The further upside in the Gold price, therefore, remains capped, despite dovish Federal Reserve expectations. Meanwhile, there were reports doing the rounds that India is expected to cut the import duty on Gold to undercut smugglers.
Gold price technical analysis: Daily chart
The technical outlook for Gold price remains unchanged, as Gold bulls continue to yearn for acceptance above the upper boundary of a rising wedge formation, now aligned at $1,942. A fresh upswing toward the $1.950 psychological level cannot be ruled out on a daily candlestick closing above the latter.
The 14-day Relative Strength Index (RSI) is flatlined just above the overbought territory, backing the bullish potential.
Gold price tested both boundaries of the rising wedge formation on Monday, awaiting a fresh catalyst for a range breakout, seemingly to the upside.
On the flip side, the lower boundary of the wedge, now at $1,923, holds the key for Gold optimists. A sustained downside break could fuel a fresh downswing toward January 18 low at $1,897
But the previous day’s low at $1,911 and the $1,900 round figure could offer some brief reprieve to Gold buyers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD clings to gains above 1.0800 amid weaker US Dollar
EUR/USD is trading sideways above 1.0800, consolidating gains in early Europe. The pair is struggling, despite a better risk tone and a broadly weaker US Dollar. Growing recession fears are capping the upside in the pair. ECB-speak awaited.
GBP/USD climbs above 1.2300 ahead of Bailey
GBP/USD has scaled above the critical resistance of 1.2300 amid a cheerful market mood on Tuesday. The US Dollar drops alongside the US Treasury bond yields amid receding global banking fears and a dovish Fed policy outlook. All eyes on Bailey's testimony.
Gold bears prod $1,960 support as bank fears ease
Gold price drops to a fresh intraday low of $1,955 as bears struggle to retake control, after an earlier retreat, during Tuesday’s European session. The bright metal’s latest weakness could be linked to the market’s optimism.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.