Gold Strong In Short Term

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Gold Strong In Short Term

Gold (Xau/Usd) Strong Above $2400

Gold (XAU/USD) continues to show a strong performance as Wednesday's session unfolds. While the gold (XAU/USD) remains steady above $2400, the focus is now on the Fed's policy decision, which is due later today.

For now, the yellow metal is trading near $2420, with $2400 acting as support and $2450 as the nearest resistance. Meanwhile, geopolitical tensions are also on the rise, which has improved the appeal of assets like gold.

Adp Report Shows 122,000 Jobs

The recently released data from the US showed a rather downbeat ADP data. According to the report, around 122,000 people were hired in July by the private sector. This was a lot higher than the forecast of 150,000 and the earlier print of 155,000.

According to experts, July's ADP numbers show the US labor market is no longer as resilient as it used to be! Following the release of the US ADP numbers, the DXY dropped below 104.00 support. Similarly, the 10-year US bond yields also tumbled to 4.11%, fresh 4-month lows.

The technical analysis shows that Gold (XAU/USD) is trading inside a channel on the D1 timeframe. The channel shows a slight upward slope, but most of the price action is sideways due to uncertainty on the rate cuts.

The 50 EMA on the D1 chart is hovering near $2366 which continues to serve as a solid support for the Gold bulls. According to experts, the fact that Gold (XAU/USD) is trading above the 50 EMA is a sign that the medium-term trend is in favor of bulls.

And if we look at the 14 EMA on the D1 chart, it shows that the market is going through a phase of indecisiveness in the short term.

Looking ahead, a break of the $2483 will allow the Gold to target the next level at $2500 which is a pretty strong resistance. On the way down, the nearest support is around $2225 followed by the $2000. Beyond that, the $1810 is also a solid support as it was the low from 6th October.

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