As we gear into today's session with key economic data on the horizon, including PCE and unemployment claims, gold's technical structure is under scrutiny. The metal remains within a bullish channel but is facing immediate resistance around $2040. The market's reaction to today's economic releases will be crucial.
Technical analysis: Gold's recent retest of the $2015 level, after bouncing from the major support at $1986, suggests a critical juncture. The lower trendline of the bullish channel is being challenged. A break below this level could lead to a test of the $2015 resistance, maybe even $2005. But, as long as the price stays inside of the channel and above $2030 there is a possibilty of the price pushing to the $2058 resistance.
Our position: Awaiting the PCE and unemployment reports, our stance is precautious. A stronger-than-expected PCE could reinforce dollar gains, pressuring gold prices, while favorable unemployment claims may underpin gold's safe-haven appeal. We're watching for a potential breakout or rejection at current levels to gauge the next directional move.
Technical analysis: Gold's recent retest of the $2015 level, after bouncing from the major support at $1986, suggests a critical juncture. The lower trendline of the bullish channel is being challenged. A break below this level could lead to a test of the $2015 resistance, maybe even $2005. But, as long as the price stays inside of the channel and above $2030 there is a possibilty of the price pushing to the $2058 resistance.
Our position: Awaiting the PCE and unemployment reports, our stance is precautious. A stronger-than-expected PCE could reinforce dollar gains, pressuring gold prices, while favorable unemployment claims may underpin gold's safe-haven appeal. We're watching for a potential breakout or rejection at current levels to gauge the next directional move.