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After reviewing the movements of the gold futures in a daily chart, I anticipate that the gold futures appear ready for a reversal, despite a bumpy move in the early session on Tuesday amid surging concerns over Federal Reserve independence following President Donald Trump’s announcement that he was firing Governor Lisa Cook.
On the other hand, a drop in the US dollar also benefited gold and broader metal prices, all of which had been experiencing choppy performances in recent sessions amid heightened uncertainty over the path of US interest rates.
I find that the gold futures are still facing significant resistance at $3434, losing some ground after rising sharply on dovish comments from Federal Reserve Chair Jerome Powell, which saw markets ramp up bets on interest rates cuts while buying in the yellow metal was curtailed chiefly by broader flows into more risk-driven assets, as investors speculated over lower U.S. interest rates.
I anticipate that if the gold futures find a breakdown below the significant support at $3396 on Tuesday, wobbly moves will continue during the rest of the week with bearish bias.
Inversely, if the gold futures find a sustainable move above the immediate resistance at $3434, the next target could be at $3469, from where gold futures could find an advent of a fresh selling spree that may likely to continue this week.
Disclaimer: Readers are advised to take any position in gold futures at their own risk, as this analysis is based only on observations.