tradingkey.logo

Gold Price Forecast: XAU/USD holds below $2,350 on stronger US PMI data

FXStreetJun 24, 2024 2:26 AM

  • Gold price trades on a weaker note near $2,320 in Monday’s early Asian session. 
  • The stronger US PMI data and Fed’s hawkish stance create headwinds for yellow metal. 
  • Safe-haven flows amid the Middle East geopolitical tensions might cap the Gold price’s downside.  


Gold price (XAU/USD) edges lower to $2,320 after retreating from two-week highs around $2,368 during the early Asian session on Monday. The stronger-than-expected US Purchasing Managers Index (PMI) released on Friday weighs on the yellow metal. The final reading of the US Gross Domestic Product (GDP) and Core Personal Consumption Expenditures (PCE) Price Index will be in the spotlight this week. 

The US economic data continues to show mixed signals in June. The recent S&P Global showed on Friday that the advanced US Composite PMI for June came in better than expected, rising to 54.6 in June from a final reading of 54.5 in May. The figure registered the highest level since April 2022. The Manufacturing PMI climbed to 51.7 in June from 51.3 in May, beating the estimation of 51.0. Finally, the Services PMI increased to 55.1 from 54.8 in May, above the consensus of 53.7.

The Fed officials pushed out the timing of the first interest rate cut this year. Fed Bank of Richmond President Tom Barkin said on Thursday that the central bank is well-positioned with the necessary firepower for the job, but will learn a lot more over the next several months. Meanwhile, Fed Bank of Minneapolis President Neel Kashkari noted that it will probably take a year or two to get inflation back to 2%. The stronger US economic data and the hawkish tone of US Federal Reserve (Fed) policymakers continue to support the Greenback and drag the precious metal lower. It’s worth noting that a higher interest rate generally weighs on the Gold price as it increases the opportunity cost of holding non-yielding assets.

On the other hand, the safe-haven flows on the back of geopolitical and economic uncertainty might lift the yellow metal in the near term. The UN Secretary-General said on Sunday that “full-scale war between Israel and Hezbollah would be "a  catastrophe," per the BBC. Several Palestinian children and women were killed and injured overnight Saturday in Israeli air strikes that targeted two homes in Gaza City, Anadolu news agency reported.


XAU/USD

Overview

Today last price

2319.08

Today Daily Change

-3.04

Today Daily Change %

-0.13

Today daily open

2322.12

 

Trends

Daily SMA20

2333.85

Daily SMA50

2343.42

Daily SMA100

2241.26

Daily SMA200

2112.4

 

Levels

Previous Daily High

2368.79

Previous Daily Low

2316.84

Previous Weekly High

2368.79

Previous Weekly Low

2306.66

Previous Monthly High

2450.1

Previous Monthly Low

2277.31

Daily Fibonacci 38.2%

2336.68

Daily Fibonacci 61.8%

2348.95

Daily Pivot Point S1

2303.04

Daily Pivot Point S2

2283.97

Daily Pivot Point S3

2251.09

Daily Pivot Point R1

2354.99

Daily Pivot Point R2

2387.87

Daily Pivot Point R3

2406.94
Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Related Instruments

Recommended Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.