Gold Steady Ahead of FOMC
Gold edged higher, with safe-haven demand from rising risks of a wider war in the Middle East offset by weak U.S. economic data that raised the prospect of a rate cut.
While rising tensions boosted bullion’s appeal as a store of value amid geopolitical turbulence, traders also factored in a series of tepid U.S. reports on retail sales, housing and industrial production that strengthened the case for a Federal Reserve rate cut this year.
However, the Middle East conflict has fueled a spike in crude oil prices that could stoke inflation, making aggressive Fed monetary easing less likely. A rate cut is usually a positive for non-yielding gold. The U.S. central bank is set to announce its latest policy settings later on Wednesday.
RECOMMENDATION
- Buy if price breaks above $3,389
- Sell if price breaks above $3,379
Resistance 2: $3,395
Resistance 1: $3,389
Support 1: $3,379
Support 2: $3,370
Note: This article is for analytical purposes only and is not a definitive reference. Please pay attention to fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id