The upside for the Gold price, however, seems limited as investors might prefer to wait for more clarity about the likely timing when the Federal Reserve (Fed) will begin its rate-cutting cycle. Hence, the focus will remain glued to the key US macro data – the Advance Q1 GDP report due later today and the Personal Consumption Expenditures (PCE) Price Index on Friday.
On the 1-hour timeframe, XAUUSD has been struggling to break above $2333 since yesterday. The overall market sentiment for XAUUSD is bearish. Starting with the EMA 50 positioned below EMA 200 caused by the EMA death cross that occurred 2 trading days ago. Since the death cross, the market has rebounded but has been unable to break above $2333 as it awaits US GDP data. The Bollinger bands suggest the market volatility is dropping as shown by contracting bands on the Bollinger bands.
The MACD and RSI both are showing bearish signs as well. MACD's signal has been submerging below the 0 line. The RSI also currently is in a bearish zone and it's attempting to break above the 60%, testing for resistance. If it gets deflected, it may suggest bearish trend continuation.
Overall, XAUUSD currently shows a bearish sentiment long term, while the short term sentiment is slightly bullish as the market rebounds from its recent death cross. The uncertainty over the Fed's rate-cutting cycle remains a key factor influencing gold's price movement.
Key Takeaways:
Forecast 2.5% vs Previous 3.4%
Forecast 214K vs Previous 212K
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