GOLD Price Analysis – Sep 28, 2023

Daily Price Outlook

Despite the ongoing risk-off mood in the market, gold prices (XAU/USD) have continued their downward trajectory, failing to find support. However, this decline can be attributed to the bullish US dollar and the rise in US Treasury bond yields, both of which have made gold appear less attractive to investors. On the flip side, the risk-off sentiment in the financial markets, driven by concerns about China's troubled real estate sector and the looming possibility of a US government shutdown, has prompted some investors to seek refuge in gold as a safe haven for their investments. Hence, this shift in sentiment is considered one of the key factors that may help gold price to limit its declines.

Gold's Challenges Amidst Fed Expectations and Economic Reports

It is worth noting that many people are assuming that the Federal Reserve could pose challenges for the gold prices. However, this belief arises from the idea that if the Fed adopts a more restrictive monetary policy, it could lead to a strengthening of the US dollar and an increase in bond yields, both of which exert downward pressure on gold price.

Moving on, traders are awaiting the release of a key inflation indicator, the US Core PCE Price Index, scheduled for Friday. This data will provide clear understandings into the Fed's potential actions regarding interest rates. Furthermore, economic reports like the US Q2 GDP and weekly jobless claims have the potential to impact the performance of the US dollar. Consequently, the overall sentiment in the financial markets will play a key role in shaping short-term trading opportunities for gold.

Market Concerns and Economic Factors Impacting Gold

Moreover, investors have been growing increasingly concerned about a couple of significant factors that are putting pressure on gold. Firstly, there are worries surrounding China's property market and the rising costs of borrowing, both of which are acting as barriers for gold's upward movement. Adding to this, the recent hawkish comments made by Minneapolis Fed President Neel Kashkari are raising expectations that the Federal Reserve might implement at least one more interest rate hike before the year's end. Furthermore, the release of better-than-expected US Durable Goods Orders data suggests that the Fed is likely to maintain higher interest rates for an extended period. Thus, the hawkish Fed comments and strong economic data can put further pressure on gold prices.

GOLD(XAU/USD) - Technical Analysis

The gold price has stabilized at the $1873.50 mark following a pronounced downturn experienced the previous day. It's anticipated that should this level be breached, we could see further downward momentum targeting the $1860.00 mark, followed by the $1845.00 threshold.

Given this context, a bearish trajectory is projected for the near term. However, it's pivotal to note that any inability to move below the $1873.50 level could curtail this decline, potentially initiating a bullish adjustment with objectives set at the $1890.00 and subsequently the $1900.00 marks.

For today, the anticipateThe gold price has stabilized at the $1873.50 mark following a pronounced downturn experienced the previous day. It's anticipated that should this level be breached, we could see further downward momentum targeting the $1860.00 mark, followed by the $1845.00 threshold.

Given this context, a bearish trajectory is projected for the near term. However, it's pivotal to note that any inability to move below the $1873.50 level could curtail this decline, potentially initiating a bullish adjustment with objectives set at the $1890.00 and subsequently the $1900.00 marks.

For today, the anticipated trading range is delineated between a support at $1855.00 and a resistance at $1890.00.d trading range is delineated between a support at $1855.00 and a resistance at $1890.00.