Gold Stuck at $3,940, Fed Key?
Gold prices held around $3,940 per ounce on Wednesday, holding some of the previous session's decline and nearing their lowest level since early October. Expectations of a US interest rate cut faded after several Fed officials adopted a cautious stance, in line with Powell's hawkish tone last week, who suggested the latest cut could be the last this year. The probability of a December cut is now around 69%, down from 90% before the FOMC decision.
Market focus shifts to the ADP private employment report as the official data release is delayed due to the federal government shutdown. Additional pressure comes from easing trade tensions and China's decision to end tax breaks for some gold retailers, potentially dampening the surge in spending in the world's largest consumer market. However, widespread risk-off sentiment could still support interest in safe-haven assets like gold.
At the time of this analysis, the gold price is around $3,953.
- Buy if the price is around $3,960.
- Sell if the price is around $3,946.
Resistance 2: $3,974.
Resistance 1: $3,967.
Support 1: $3,939.
Support 2: $3,932.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
