experienced a decline of -0.74%, settling at 62095, influenced by a strengthening U.S. dollar and rising bond yields amidst reduced expectations for an early Federal Reserve rate cut. The market is currently anticipating a key inflation print, adding to the uncertainty. Positive employment data, including the ADP (NASDAQ:) report revealing the addition of 164K jobs in December, countered by the ISM’s indication of a slowdown in the services industry, has created a mixed economic landscape.
Geopolitical risks and concerns about China’s economic challenges continue to act as a backdrop, supporting Gold as a safe-haven asset. Traders adjusted their expectations for Fed rate cuts in 2024, lowering the projection from six to four following the release of encouraging U.S. macro data. The upcoming Nonfarm Payrolls (NFP) report, expected to show the addition of 170K jobs in December, will be closely monitored, as it could influence the Fed’s policy outlook, subsequently impacting the U.S. dollar and Gold prices.
From a technical perspective, the Gold market is currently undergoing long liquidation, evident in the -8.46% drop in open interest, settling at 11021. Prices have declined by -462 rupees. Support for Gold is identified at 61840, with a potential test of 61590 levels if this level is breached. On the upside, resistance is anticipated at 62425, and a move above this level could lead to a test of 62760.
