

Market Analysis
Gold prices (XAU/USD) continued their consolidation above $2,300 during the Asian trading session on Thursday, with traders awaiting further cues regarding the Federal Reserve's stance on interest rate cuts before making fresh trading decisions.
Focus remains on key US economic data, particularly the Advance Q1 GDP report today and the Personal Consumption Expenditures (PCE) Price Index on Friday, which are expected to influence short-term dynamics in the US Dollar (USD) and provide momentum for gold.
Recent comments from several Fed officials suggesting a more hawkish stance indicate that the central bank is not in a hurry to implement rate cuts.
Additionally, stronger-than-expected US consumer inflation data has led investors to revise down their expectations for the timing and frequency of rate cuts in 2024, keeping US Treasury bond yields elevated and acting as a deterrent for non-yielding assets like gold. Furthermore, easing concerns about a significant escalation of the Middle East crisis have limited the demand for safe-haven assets like XAU/USD.
In terms of technical analysis, gold prices have shown resilience above the $2,300 mark despite finding acceptance below the 23.6% Fibonacci retracement level of the February-April rally.
However, it is advisable for bearish traders to wait for confirmation with a sustained move below the $2,300-2,290 range or the recent two-week low touched on Tuesday before considering further downside bets. Potential support levels lie at $2,260-2,255, $2,225, and the confluence of $2,200-2,190, comprising the 50% Fibonacci level and the 50-day Simple Moving Average (SMA).
On the upside, immediate resistance is seen around $2,325, followed by the overnight swing high at $2,337-2,338. A break above these levels could lead to a test of resistance zones near $2,350-2,355 and $2,380, with further upside potential towards $2,400 and the all-time peak near $2,431-2,432. Clearing these levels might signal a continuation of the recent upward trend observed over the past couple of months.
Paraphrasing text from "FX Street" all rights reserved by the original author.