Gold Slightly Held Back, Fed in Focus
Gold prices started the day with a moderate increase, after experiencing a technical correction yesterday related to profit taking and many investors choosing to wait for important data from the Fed's decision on its interest rates.
In general, geopolitical factors and demand for safe havens are still the main supporters of gold's increase. Israel-Iran tensions continue to be the main drivers: earlier this week gold rose sharply due to concerns about escalation - although it was later corrected because the market considered the potential for expansion to be restrained. Safe-haven demand remains strong, but the rally has eased because investors are starting to divide their attention to the Fed's policy issues.
For now, gold's movement is still stable in the $3380 - $3410 area because many prefer to wait and see the Fed's decision which will be released on Thursday. Expectations of an interest rate cut are still prominent, the market predicts the first cut in September, mostly considering the latest inflation data and PPI. Weakening CPI and PPI data support this thesis, but gold prices are corrected because investors are holding back before the official FOMC decision. If we analyze the daily chart movement, we can see that important Support is around $3,300/oz while Resistance is at $3,432–$3,450/oz, and a close above $3,500 will signal a medium-term technical breakout upwards.
Source : (mrv@Newsmaker)
