Gold price remains confined in a familiar trading range above $2,300 mark
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Gold price (XAU/USD) struggles to gain traction and remains in a narrow trading range around $2,320. The Federal Reserve's hawkish outlook supports elevated US Treasury bond yields and attracts dip-buyers for the US Dollar, capping the upside for gold. The US macro data indicates easing inflationary pressures and speculation of two rate cuts by the Fed in September and December. Gold price remains within a familiar range and below the 50-day Simple Moving Average (SMA). The USD strength and risk sentiment will play a role in determining the direction of gold. Technical analysis suggests immediate resistance at $2,333-2,336 and support at $2,300. Central banks are the biggest buyers of gold, with emerging economies like China, India, and Turkey increasing their reserves. Gold has an inverse correlation with the US Dollar and US Treasuries, and its price depends on factors such as geopolitical instability, recession fears, interest rates, and the strength of the US Dollar. The article provides a disclaimer that the information is for informational purposes only and should not be considered as investment advice.
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