EUR/USD H4 chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
Volatility in GOLD Price as USD Swings: What to Expect Next?
Gold maintains its ground at $1,970, ( Currently $1963.60 ) continuing its three-week uptrend, as investors closely monitor central banks’ actions. Thursday witnessed fluctuations in the US Dollar, causing volatility in Gold price. The Greenback initially lost momentum due to disappointing housing data, fueling speculation that the US Federal Reserve (Fed) might be nearing the end of its tightening cycle.
Despite concerns over China’s growth impacting the market sentiment, the safe-haven appeal of the US Dollar waned due to dovish Fed expectations. This allowed Gold buyers to drive the price to fresh two-month highs of $1,988.
However, the tide turned during American trading, with the US Dollar staging a strong comeback in line with the rise in US Treasury bond yields. Risk sentiment worsened after disappointing tech earnings and renewed hawkish Fed expectations, leading to a decline in Gold price.
US weekly Jobless Claims data indicated a resilient labor market, supporting the case for another rate hike this year after the expected 25 basis points increase next week. The latest data showed initial Unemployment Claims falling to a two-month low of 228,000.
Gold price may continue its rebound if the US Dollar experiences a pullback, driven by end-of-the-week flows and pre-Fed decision position adjustments. As the United States economic data remains relatively dry, broader market sentiment and US earning reports will play a significant role in influencing Gold’s trajectory.
EUR/USD M30 Forex chart – Analysis Made By REVOLVER™ and ISOTRIUMPH™ Indicators.
TurnAround Point: 1970.00
Our preference
Short positions below 1970.00 with targets at 1959.00
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