GOLD: Pullback in Short Term?
Hi Traders!
Gold prices rose early on Thursday as the dollar weakened ahead of next week's expected Federal Reserve interest-rate cut.
Gold for December delivery was last seen up US$19.70 to US$2,562.10 per ounce. Hopes among gold bulls that the Federal Reserve's policy committee would offer 50 basis point rate cut at the end of its two-day meeting next Wednesday were dashed when data released yesterday showed the August U.S. Consumer Price Index rose by 2.5% down from 2.9% in July.
"Gold dropped back on Wednesday after US inflation data dimmed the prospects for a 50-basis-point cut next week, but underlying strength prevails, with daily higher lows signaling continued appetite from investors," Saxo Bank noted.
The dollar eased early, with the ICE dollar index last seen down 0.08 points to 101.61. Treasury yields were flat, with the yield on the U.S. two-year not unchanged at 3.648%, while the 10-year note was paying 3.658%, also steady.
From a technical point of view, on the daily chart the trend is bullish (but has not yet reached our Target at the moment). That said, once the harmonic structure is completed, we do not exclude an interesting mid-term pullback. What do you think? Please support our idea for future updates.
Thanks for watching
Gold prices rose early on Thursday as the dollar weakened ahead of next week's expected Federal Reserve interest-rate cut.
Gold for December delivery was last seen up US$19.70 to US$2,562.10 per ounce. Hopes among gold bulls that the Federal Reserve's policy committee would offer 50 basis point rate cut at the end of its two-day meeting next Wednesday were dashed when data released yesterday showed the August U.S. Consumer Price Index rose by 2.5% down from 2.9% in July.
"Gold dropped back on Wednesday after US inflation data dimmed the prospects for a 50-basis-point cut next week, but underlying strength prevails, with daily higher lows signaling continued appetite from investors," Saxo Bank noted.
The dollar eased early, with the ICE dollar index last seen down 0.08 points to 101.61. Treasury yields were flat, with the yield on the U.S. two-year not unchanged at 3.648%, while the 10-year note was paying 3.658%, also steady.
From a technical point of view, on the daily chart the trend is bullish (but has not yet reached our Target at the moment). That said, once the harmonic structure is completed, we do not exclude an interesting mid-term pullback. What do you think? Please support our idea for future updates.
Thanks for watching
Note
🔴 Our bullish target has been reached, now some reversal patterns on small time frames (intraday) should appear, let's see.
Note
Gold is set to be boosted by central-bank demand and imminent interest-rate cuts by the Federal Reserve, Goldman Sachs says, reiterating it sees prices at $2,700 a troy ounce by early 2025. According to the U.S. bank, the precious metal will be supported by rising central-bank purchases since mid-2022 and rate cuts bringing Western capital back into gold exchange-traded funds. Gold futures currently trade 0.1% lower at $2,605.50 a troy ounce, as traders await to see the size of the U.S. central bank's first rate cut on Wednesday. Markets are currently pricing in a 33% chance of a 25-basis-point cut and a 67% chance of a 50-basis-point cut, the CME FedWatch tool shows.Note
Manage your positions, tomorrow FED announcement
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