Gold Slips to $1,640 Ahead of US Fed Rate & NFP Figures This Week
The gold price is underperforming in the Tokyo session, as the market's impulse is producing mixed results. Following in the footsteps
The gold price is underperforming in the Tokyo session, as the market’s impulse is producing mixed results. Following in the footsteps of the rangebound US dollar index, the precious metal XAU/USD is fluctuating in a narrow range of $1,640.60-1,644.25.
S&P 500 futures are retaining Friday’s gains but have shown a minor drop in Tokyo, which appears negligible. On the other hand, the alpha created by US government bonds is gaining traction. The yield on a 10-year US Treasury note has risen to 4.04%.
Gold prices are trading sideways as investors remain cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement.
According to the CME FedWatch tool, the likelihood of a 75 basis point (bps) rate hike is 82.3%. Goldman Sachs, a major investment banking business, predicts a 75 basis point rate hike this week, with the projected terminal rate exceeding 4.75% to 5%.
Aside from that, Tuesday’s PMI report is quite important. The ISM Manufacturing PMI data is expected to be lower at 50.0, compared to the previous release of 50.9. Also, the ISM New Orders Index, which measures forward demand, is expected to be much higher at 49.1 than the previous figure of 47.1.
Gold Technical Outlook
Gold price finished last Friday with strong pessimism, settling at $1,640, and is expected to decline further in the next month, primarily targeting $1,615 levels.
As a result, a bearish bias is recommended for today, with a break of $1,635 adding more confirmation to the projected slide. In contrast, a break of $1,660 will stop the negative current pressure and lead to a price recovery.
Today’s trading range is likely to be between $1,615 support and $1,660 resistance.
Today’s projected trend: Bearish below $1,640 and vice versa.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals