© Reuters.
In today’s Asian market session, gold prices exhibited narrow trading as investors processed the latest cues from the Federal Reserve and anticipated the release of flash US PMI data. The precious metal found immediate support in the range of $1,989-$1,988, with additional backing from the 200-day Simple Moving Average (SMA) near $1,940.
This cautious trading follows a modest rise on Thursday, where gold edged higher but did not surpass the critical threshold of $2,000 per ounce. The upward movement was partly attributed to dovish expectations for future Federal Reserve interest rate hikes after an October inflation report suggested a weakening in the U.S. dollar’s strength. Despite facing resistance just below $2,000, daily chart oscillators have remained positive.
The market’s hesitation comes in the wake of hawkish minutes from Tuesday’s FOMC meeting, which tempered some investors’ expectations for imminent rate reductions. This has added to the complexity of predicting gold’s short-term price movements.
Central banks’ record purchases of gold last year were also spotlighted as a testament to the metal’s enduring status as a reserve asset during times of economic uncertainty. This backdrop of robust institutional demand underscores gold’s appeal as a haven asset amid global financial volatility.
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