Market Overview on Gold

Interest from institutions in gold remains limited as traders take a closer look at the Federal Reserve’s upcoming actions. Recent retail sales and PPI data suggest some resilience, easing growth concerns, but persistent inflation expectations may keep policymakers cautious. Unless there’s a notable dovish move or a shift in geopolitical tension, gold could continue to face downward pressure.

Future statements from the Fed are likely to be detached from capital movements toward risky assets, unless they clearly oppose imminent rate hikes or confirm short-term policy adjustments. In the near term, gold’s potential is hindered by a decrease in safe haven demand coupled with rising inflation uncertainties.

On a technical note, the XAU/USD pair is still on an upward trajectory, though the momentum appears to be tilting downward.

A sustained movement off the $3166.46 pivot might push this week’s selling pressure down to $3018.52, which could be the next major pivot point.

Traders are likely to engage in buying dips for support, yet, in contrast to previous instances, these moves seem to be met with selling from other traders.

The primary support level stands at the $2956.56 swing bottom. If that level fails, attention should shift to the downside, with a 52-week moving average target of $2707.24.

Next, let’s look at the economic calendar for further insights.