Gold price is flirting with a multi-month peak as bulls await more cues regarding the Fed’s rate-cut path. Despite a slight dip intraday, gold reversed its course and is now trading near a three-month high. Global risk sentiment has slightly deteriorated, boosting the appeal of safe-haven assets like gold. Additionally, the Fed’s expectations of a June rate cut have weakened the US dollar, further supporting gold prices.

Geopolitical tensions in the Middle East and concerns about slowing economic growth in China contribute to the weaker tone in equity markets, driving investors towards safe-haven assets. The focus is now on Fed Chair Jerome Powell’s congressional testimony, which could clarify the Fed’s stance on interest rates.

Upcoming US macro data releases, including the Nonfarm Payrolls report on Friday, will also influence gold prices. The release of the US ISM Services PMI later today could offer short-term trading opportunities for gold.

In technical analysis, gold’s strong upward movement reaffirms its breakout from previous resistance levels. However, the Relative Strength Index (RSI) indicates overbought conditions, suggesting a potential consolidation or modest pullback before further gains. The $2,100 level is currently acting as support, with resistance at the $2,064-2,062 region. A break below this level could trigger some selling pressure, but overall, the outlook for gold remains positive, with the potential to retest all-time highs.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.

USD 0.00%0.00%0.02%0.03%-0.01%0.02%-0.05%
EUR-0.01% 0.01%0.01%0.01%0.00%-0.01%-0.03%
GBP0.01%0.00% 0.03%0.02%0.00%0.03%-0.02%
CAD-0.02%-0.03%-0.03% -0.03%-0.03%-0.02%-0.05%
AUD-0.04%-0.02%-0.03%0.00% -0.02%-0.02%-0.05%
JPY0.01%0.02%-0.02%0.04%0.00% 0.03%-0.03%
NZD-0.03%-0.02%-0.04%-0.01%0.01%-0.04% -0.03%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).


What are interest rates?

Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%.
If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.

By Admin

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