- Gold is looking heavy with Friday's candle signaling buyer exhaustion.
- A close below $$1,338 would validate Friday's candle with a long upper wick.
- Markets to continue paring back rate cut bets ahead of Wednesday's Fed rate decision.
Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.
The yellow metal is currently trading at $1,339 per Oz, representing 0.14 percent losses on the day, having hit a high of $1,358 on Friday - a level last seen in April 2018.
Notably, the rise to 14-month highs was short-lived with prices closing largely unchanged at $1,341 on Friday. Essentially, the yellow metal created a candle with long upper shadow on Friday - a sign of buyer exhaustion.
A bullish-to-bearish trend change would be confirmed if gold prices validate Friday's candlestick with a close below $1,338 today. That looks likely as Friday's upbeat US retail sales dispelled the need for an immediate rate cut. The market, therefore, could continue to pare back its July rate cut expectations ahead of the Fed, keeping the US dollar better bid.
The US central bank is expected to keep rates unchanged at 2.5% this week. While recent soft economic data have boosted rate cut expectations, Goldman Sachs believes the markets have overpriced rate cuts and the central bank will stand pat for the rest of the year.
|Today last price||1338.96|
|Today Daily Change||-2.97|
|Today Daily Change %||-0.22|
|Today daily open||1341.93|
|Previous Daily High||1358.2|
|Previous Daily Low||1338.2|
|Previous Weekly High||1358.2|
|Previous Weekly Low||1319.99|
|Previous Monthly High||1306.9|
|Previous Monthly Low||1266.35|
|Daily Fibonacci 38.2%||1345.84|
|Daily Fibonacci 61.8%||1350.56|
|Daily Pivot Point S1||1334.02|
|Daily Pivot Point S2||1326.11|
|Daily Pivot Point S3||1314.02|
|Daily Pivot Point R1||1354.02|
|Daily Pivot Point R2||1366.11|
|Daily Pivot Point R3||1374.02|
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