Fed Rate Uncertainty Dims Metal Shine

NEW YORK (January 3) Gold prices declined in Asian trade as the dollar strengthened, causing the yellow metal to lose some recent gains. This shift in the market is due to uncertainty over the Federal Reserve’s rate cut timings for 2024.

Despite a strong rally in December 2023, fueled by expectations of early rate cuts, gold eased off, with spot gold and futures both experiencing a 0.3% drop. Investors are awaiting the Fed’s December meeting minutes and upcoming nonfarm payrolls data for further cues.

Copper prices also fell, affected by weak Chinese economic data and a stronger dollar, distancing from a recent five-month high.

Gold Prices Forecast

On January 3rd, Gold’s market performance presents a bearish outlook as it trades at $2,054, down 0.2%. Key technical indicators provide insights into its future movement. The pivot point stands at $2,058, with immediate resistance levels at $2,077, $2,088, and $2,106.

Conversely, support is found at $2,044, $2,029, and $2,016. The Relative Strength Index (RSI) at 42, suggests bearish sentiment, while the Moving Average Convergence Divergence (MACD) at -2.2070 indicates potential downward momentum.

Notably, Gold is crossing below the 50-Day Exponential Moving Average (EMA) of $2,058, and the formation of a bearish engulfing candle hints at a selling trend. The overall trend for Gold is bearish below the $2,058 threshold.

FXEmpire