Gold Eyes Retracement Ahead of Key U.S. Data

Fundamental Analysis

* Double Top Formation? Overall, the long-term trend for gold remains bullish, but the commodity might face a technical correction and attract bargain buying from investors ahead of several crucial U.S. economic data releases and events. In the short term, the technical chart indicates that the gold market has been forming a double top, suggesting the possibility of a short-term retracement.

Technical Analysis

* Technical Correction: Gold prices are currently trading lower following a retracement from the resistance level. In the short term, we anticipate that gold may experience further retracement. The MACD indicates increasing bearish momentum, while the RSI stands at 42, tilting the commodity towards a more bearish bias.

* Resistance and Support: Should bearish momentum continue; the commodity could potentially extend its losses toward the support level of 2505.00. However, failure to break lower could indicate a rebound, with the market eyeing the resistance level of 2525.00.

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Potential Risks

Looking ahead, investors will focus on key U.S. data this week, including the CB Consumer Confidence report, GDP figures, and the Core PCE Price Index. Additionally, developments in the Middle East, particularly ongoing political tensions, are expected to sustain demand for safe-haven assets.

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Monitoring

Stay updated on U.S. economic data, developments in the Middle East, central bank communications, and any shifts in the U.S. Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.