Gold prices are trading around the key $2,000 level on Monday due to safe-haven demand amid escalating conflict in the Middle East. Investors are cautious ahead of the upcoming U.S. Federal Reserve policy meeting and the US job report on Friday that are broadly expected to create volatility to the majority of the instruments traded against the Dollar. . The Fed is expected to keep interest rates unchanged, but market participants will be focused on Chair Jerome Powell's commentary in the subsequent press release. Strong economic data and concerns over the Middle East conflict are likely to keep gold prices supported with fueled-up volumes.
From the technical point of view gold prices have found sufficient support exactly on the 38.2% of the weekly Fibonacci retracement level and continued to rally until the day of this report being written. Just before the US market opens gold seems to be losing some steam and moves slowly to the downside and at the same time the Stochastic oscillator has been in the extreme overbought level for the past 2 consecutive weeks possibly indicating that a correction in the following sessions might be a prevailing scenario. If the correction happens then the first area of possible support could be found around $1,975 which is made up of the 38.2% of the weekly Fibonacci retracement as well as the area of latest reaction of the price.
From the technical point of view gold prices have found sufficient support exactly on the 38.2% of the weekly Fibonacci retracement level and continued to rally until the day of this report being written. Just before the US market opens gold seems to be losing some steam and moves slowly to the downside and at the same time the Stochastic oscillator has been in the extreme overbought level for the past 2 consecutive weeks possibly indicating that a correction in the following sessions might be a prevailing scenario. If the correction happens then the first area of possible support could be found around $1,975 which is made up of the 38.2% of the weekly Fibonacci retracement as well as the area of latest reaction of the price.