Gold Under Pressure Ahead of FOMC
Gold weakened and remained in the red after the US dollar strengthened and Treasury yields rose again, making non-yielding assets like gold less attractive. Thin trading due to the Lunar New Year holiday in parts of Asia also increased volatility, making selling pressure appear sharper when liquidity is low.
Market participants are now holding positions ahead of the release of the FOMC Minutes and the Fed's favorite inflation data, core PCE (Friday), which could change expectations about when interest rate cuts will begin. At the same time, the easing of US-Iran geopolitical tensions has also eroded demand for safe havens, so gold's recovery potential still depends on whether the Fed signals a dovish bias or whether it will remain tighter for longer. (alg)
Gold price at the time of this analysis was $4,925
- Buy if the price moves below $4,930
- Sell if the price moves below $4,921
Resistance 2: $4,945
Resistance 1: $4,936
Support 1: $4,918
Support 2: $4,909
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
