**Gold Market Analysis: Establishing the Daily Low and Evaluating Upside Potential**
*Adapted and expanded from an original analysis by Matías Salord for FXStreet, with additional context from recent financial reporting and technical patterns observed in the gold market in 2024.*
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## Overview
Gold, known for its status as a safe-haven asset, frequently attracts attention from traders during periods of market uncertainty. As global economic conditions evolve, so too does the precious metal’s price action, influenced by factors such as inflation, central bank policies, and geopolitical developments. In the latest review, gold prices have worked to establish a potential low for the day, creating new prospects for upward movement. By examining technical indicators, economic influences, and market sentiment, traders can develop a more nuanced view of the potential trajectory for gold in the near term.
## Current Price Action and Technical Overview
– **Daily Chart Movements**: According to Matías Salord’s analysis on FXStreet, gold started the session consolidating near recent lows, then found support at a crucial level, preventing further declines.
– **Support and Resistance Levels**: Prices held above support at the 2,320 region, signaling that buyers remain active at this threshold. Immediate resistance stands at 2,355, with an extension level near 2,380, which, if broken, could open further space for upward momentum.
– **Candlestick Patterns and Indicators**: The price action showed potential for reversal after posting a solid base at the intraday low. Indicators such as the Relative Strength Index (RSI) remained in a neutral zone, suggesting an absence of pervasive overbought or oversold conditions.
### Key Takeaways from Technical Analysis
– **Intraday Low Established**: The base formed around 2,320 indicates a potential daily low, creating a platform for possible recovery.
– **Upside Potential Moves**: If the price exceeds 2,355, technical momentum could carry gold toward 2,375 and 2,380.
– **Volume and Volatility Considerations**: Despite a relatively quiet session, any increase in trading volume could trigger sharp price moves.
## Economic and Geopolitical Influences
Several macroeconomic factors are impacting gold prices in the present session and could shape its medium-term trajectory.
### US Federal Reserve Policy
– **Interest Rates and the Dollar**: The Federal Reserve’s stance on interest rates has a direct effect on gold. Higher rates tend to strengthen the US dollar and diminish the appeal of non-yielding assets like gold. Conversely, expectations of rate cuts increase gold’s attraction.
– **Inflation Data**: Most recent US Consumer Price Index (CPI) data hints at moderating inflation but remains above the Fed’s 2 percent target, preserving uncertainty over future rate cuts.
### Geopolitical Risks
– **Ongoing Conflicts**: Persistent geopolitical tensions in Eastern Europe and the Middle East foster risk aversion in global markets. Each new
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