Daily Price Outlook
Currently, the precious metal gold is trading around $1980, potentially targeting the next resistance level at $1986. Although the US dollar was boosted on Monday following positive manufacturing data, the market remains on edge, awaiting the Federal Reserve's decision on whether to increase interest rates this week.
At 1:55 p.m. ET (1755 GMT), the price of gold fell by 0.4% to $1,982.20 per ounce, after having gained almost 1% earlier in the session.
Gold Futures Close at $1,992.20, Marking a 0.3% Decrease in Value
In April, the manufacturing sector in the United States experienced growth in new orders and work, reaching a three-year high. Additionally, construction spending in March exceeded expectations due to investments in nonresidential facilities.
International Gold and Silver Rates
According to Reuters, gold prices rose on Tuesday as cautious market investors awaited new signals from major central banks regarding their monetary policy plans, especially from the U.S. Federal Reserve.
The Federal Open Market Committee (FOMC) will meet on May 2-3, and the market anticipates a 25 basis point increase in interest rates.
While gold is often seen as a hedge against inflation, the demand for the zero-yielding asset tends to decrease when interest rates go up.
Platinum spot prices fell by 2.2% to $1,050.83, palladium prices decreased by 3.2% to $1,452.57, and spot silver prices dropped 0.2% to approximately $25 per ounce.
The price of gold in India is determined by various factors such as the exchange rate of the rupee, the global market, interest rates, and government regulations. If the rupee depreciates against the US dollar, the price of gold in India tends to increase.
The price of silver in India is influenced by various factors such as the rates of silver, industrial demand, the size of purchases, inflation, and others.
GOLD – Technical Outlook
Examining the one-hour timeframe, gold has entered a bearish zone and is now in the oversold territory, indicating that buyers may be entering the market.
They are likely to aim for a 23.6% Fibonacci retracement at $1986. A bullish break above $1986 could lead gold price towards the next target of $1989, a level extended by the 38.2% Fibonacci retracement. An additional break above $1989 may expose gold prices towards $1996.
On the other hand, if selling bias dominates, gold may drop below $1979, with the potential to fall to $1975 or even further down. However, it is recommended to place a stop-loss below the $1975 level.
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