Gold Weekly Forecast
Gold sustained losses for the second consecutive week, facing pressure from rising US Treasury bond yields and renewed strength in the US Dollar (USD). As the focus shifts to upcoming economic indicators and the critical resistance level of $2,000, the precious metal’s trajectory remains uncertain.
Bearish Sentiment Persists
Gold experienced a downward trend fueled by recovering US Treasury bond yields and a strengthening US Dollar. The technical outlook suggests that bearish sentiment continues to dominate the market.
Table of Contents
Resistance at $2,000
The pivotal resistance level of $2,000 holds significant importance in determining the metal’s next move. If confirmed as resistance, sellers may maintain control, exerting further downward pressure on Gold prices.
Impact of US Economic Data
The release of key US economic data, including February PMI figures and FOMC Minutes, is anticipated to influence Gold’s performance in the coming week. Investors await insights into inflationary pressures and the Federal Reserve’s monetary policy stance.
Inflation Data Sparks Movement
Gold initially edged lower as investors awaited vital US inflation data. The Consumer Price Index (CPI) for January passed marketplace expectations, contributing to a upward thrust in US Treasury bond yields and next Gold charge decline.
Fed’s Stance on Rates
Federal Reserve officials, together with Fed Vice Chair Michael Barr, expressed self belief in inflation trends but emphasised the want for sustained effective information before considering rate changes. The Fed’s careful method impacts investor sentiment and market dynamics.
PMI Figures Awaited
Investor attention turns to the upcoming launch of Manufacturing and Services PMI reports for February. Any surprising weakness in non-public quarter pastime could affect expectancies for destiny rate changes, doubtlessly impacting Gold prices.
Market Holiday and Fed Minutes
With US markets closed on Monday for the President’s Day holiday, awareness shifts to the discharge of FOMC Minutes on Wednesday. Insights into the Fed’s discussions concerning monetary coverage modifications will provide critical steering for Gold buyers.
Price Pressure Considerations
Investors intently screen PMI reviews for symptoms of fee pressures in the economy. Sticky input inflation in the provider region should assist the USD and restriction Gold’s upside capacity, even amid disappointing PMI readings.
As Gold navigates through a complex monetary landscape, attention remains on key resistance levels and essential indicators, shaping the metal’s outlook within the week in advance.
Amjad Mustafa, the owner and author of Keen2Know, is a highly qualified individual with strong experience in technical engineering. He is an experienced professional with a variety of business, technology, and car knowledge. His academic background prepared him for a diverse career and established him as a prominent figure at the intersection of these rapidly evolving industries.
