As the Gold price (XAU/USD) approaches the $2,400 mark, investors are keeping a close eye on the upcoming US economic data. With speculation rife that the Federal Reserve (Fed) will cut interest rates starting in September, US bond yields have dropped significantly, making Gold a more attractive investment option.
Earlier concerns about the US presidential elections have also impacted the Gold price, with expectations of a second term for Donald Trump leading to inflationary fears. However, with Joe Biden stepping down and Kamala Harris taking his place as the Democratic nominee, the scenario has shifted in favor of the US Dollar (USD).
Looking ahead, investors are eagerly awaiting key US economic indicators, such as the preliminary US S&P Global PMI, Q2 GDP, and Durable Goods Orders, to gauge the Fed’s next moves on interest rates. The recent reduction in customs duty on Gold in India is also expected to impact demand in the region.
Key Takeaways for Investors
- Gold price nears $2,400 resistance amid Fed rate cut hopes
- US economic data to provide insights into Fed’s interest rate decisions
- Customs duty reduction in India may boost physical Gold demand
Technical Analysis: What’s Next for Gold?
Despite a temporary stall in upside momentum, the Gold price remains above $2,400, supported by the 20-day EMA at $2,390. A break above the all-time highs of $2,480 could signal further upside potential for Gold.
Overall, the current market conditions suggest a mixed outlook for Gold, with key economic data and geopolitical developments likely to drive future price movements.