The gold market is nearing the end of the trading day on a positive note, with prices rising due to a notable decline in the U.S. dollar and a dip in U.S. Treasury yields. August gold futures has showcased a remarkable performance, climbing $24.60 to reach $1,983.00, while gold spot (XAU/USD) jumped to $1,970.14.
Investors are now turning their attention towards the upcoming Federal Open Market Committee (FOMC) meeting scheduled for next week. The prevailing sentiment among the majority of market participants is that the Federal Reserve will take a break in its cycle of interest rate hikes. However, a growing number of market watchers believe that the U.S. central bank may take cues from yesterday’s move by the Bank of Canada (BOC), which raised interest rates by 0.25% after a four-month hiatus. This development has prompted some experts to suggest that a pause by the Fed doesn’t necessarily imply a shift in policy direction. Instead, it could serve as a means to temporarily slow down rate hikes while awaiting fresh data, according to a report in the Wall Street Journal.
From a technical standpoint, August’s gold futures indicate that buyers are currently in control. The next target for the bullish camp is to achieve a closing price above the psychological resistance level of $2,000.00. The seller’s immediate objective is to push futures prices below the recent technical support at the May low of $1,949.60. The initial hurdle lies at this week’s high of $1,986.50, followed by the key milestone of $2,000.00, while initial support is expected at $1,970.00, and then at this week’s low of $1,953.80.
