Gold prices experienced a 0.30% increase on Tuesday, driven by a combination of factors including a decline in US Treasury yields and a weakening US dollar. Traders are closely watching for the release of important US inflation data, as well as the upcoming presidential debate between Kamala Harris and Donald Trump, which could have a significant impact on market sentiment. Currently, Gold (XAUUSD) is trading at $2,514, showing signs of recovery from a low of $2,500.
The likelihood of a Federal Reserve interest rate cut is high, with a 67% probability of a 25 basis point reduction and a 33% chance of a 50 basis point cut. Recent US job data revealed disappointing figures in terms of new job creation, although the unemployment rate did see a slight decrease. This mixed data has provided some relief to the Fed, but uncertainty still looms over the market.
On the H4 timeframe, Gold (XAUUSD) witnessed a rebound from trendline support, driven by the convergence of the daily timeframe pivot and hidden divergence on the stochastic indicator. However, the current price action indicates that Gold is now hovering in the vicinity of another daily timeframe pivot, suggesting a potential reversal in the near future. This could present an opportunity for bearish traders to enter the market, with the break-and-retest of trendline support serving as a secondary entry point.
Looking at the 1-hour timeframe, Gold seems to be forming a SBR pattern, which could be confirmed following a rejection from the supply zone above. Overall, the sentiment remains bearish among analysts, with a target price of $2,495.75 and an invalidation point at $2,530.15. The current market conditions and technical indicators point towards a potential downturn in Gold prices in the coming sessions.
The market sentiment towards Gold prices is bearish, with a focus on key economic data releases and geopolitical events to determine the future direction of the market. Traders should closely monitor price movements and technical signals to make informed decisions in this volatile trading environment.