The value of gold is attempting to maintain its immediate rebound motion in the middle of a continuous downturn. Last Wednesday, the gold’s pricing fell to a new month bottom around the psychologically supportive level of $2,000 before rebounding.

A Brief Review

Notwithstanding the rally, the price of gold remains under pressure as traders speculate on when the U.S Fed will begin its awaited rate-cutting phase. The Federal Reserve’s prospects for a quick rate decrease are fading as the last stage of price increases in the US. Which proves a lot more tenacious than originally predicted, thanks to increased spending by consumers and stable job market conditions.

Key Highlights

Despite fading U.S Fed rate cutting predictions, the gold market fails to maintain its gain.

Persistent inflation in the US and good sales at retail numbers support the continuation of an aggressive monetary policy

Investors will pay close attention to US Fed Bostic’s comments.

In the lack of primary economic information, investors are anticipated to zero in on the US Fed’s next policy decision. The Fed is largely expected to continue holding rates of interest steady in the 5.25-5.50 percent band. Markets will be closely watching how the Federal Reserve plans to lower interest rates by 25 bps quarterly in the year 2024. Like forecast at the Dec monetary authority session.

Source: TradingView

Gold Trading Open Interest – Positioning

Retail investor statistics reveals that 67.93 percent of investors are overall long, having a long-short proportion of 2.12 versus 1. The amount of players in the net-long is 21.05 percent more than Wed.  And 26.39 percent larger than the week before. Whereas the total amount of net-short traders is 6.88 percent fewer than earlier & 15.18 percent less than the week prior.

Daily – Technical Indicators & Signals

(Sellers advised – Oversold* Values)