Allied gold buyers are remaining on high alert. They’re eying big economic data releases from the United States and high-profile speeches from Federal Reserve policymakers. These three notable events ahead are poised to impact gold prices in a big way, likely sparking a sustained bullish breakout in the market.
As of Wednesday’s Asian trading session, gold prices are trying for a slight comeback, with markets just above $3,350. What’s most important though, is this price point. Traders are eagerly watching which overhead resistance gold will manage to push through, a clear indicator of whether we’re in for an upward trend. The US market is abuzz with anticipation over this week’s data releases. The combined uncertainty on these crucial metrics on inflation and employment are stoking volatility.
Today’s landscape is more of a fight up against major resistance levels. Traders pay a lot of attention to key economic releases, because they can impact the direction of monetary policy. This, in turn, impacts gold’s appeal as a safe haven asset. In recent weeks, this has been exacerbated by a market scramble for safety. Countless investors and operators continue to await signals from the Federal Reserve indicating it might change its approach to interest rates or maintain consistency in its approach.
Gold’s impressive performance on Wednesday is an indication of investors’ cautious optimism. Despite this bargain price, the price has overall been very strong, maintaining above that $3,350 threshold. The real test will come with major US economic data on the horizon. According to market analysts, the impacts of these reports have the potential to support gold prices or cause deeper consolidation.
“AUD/USD erases gains to near 0.6450 after downbeat Australian Q1 GDP data.” – FXStreet
This remark is similar to what the broader sentiments in the forex market, which tend to track along with the movement of gold prices. As traders trade within volatile currency pairs, the link between these markets highlights the need for macroeconomic analysis.