Gold prices flat as rate cut hopes dim on US inflation data
Gold prices (Symbol: XAUUSD) traded in a flat momentum following a sharp decline in the previous session, as recent US inflation data tempered expectations for a more aggressive rate cut from the Federal Reserve. Spot gold nearly unchanged from the previous trading day. On a technical analysis front, the 15-minute chart for XAUUSD (Gold) shows a recovery after a sharp decline earlier in the session, where the price dropped. The price has since rebounded just below the resistance level. The EMA (24, 24, 72) lines are currently converging, indicating potential for further upside if the price can maintain above the 2457 level. The MACD histogram is positive, signalling increasing buying momentum, which supports the likelihood of continued recovery. However, traders should watch the resistance near 2460 for any potential reversals or consolidations.
Read more for the latest updates about the gold prices here.
Disclaimer:
The recent inflation data suggests that while a rate cut in September is likely, it may not be as deep as previously anticipated. This scenario could lead to range-bound trading in gold prices as traders weigh the potential for further rate cuts against the ongoing economic data releases. Monitoring US retail sales and jobless claims closely will be crucial for making informed trading decisions in the short term. Risk management is advised for day traders.
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