Gold Trades With A Bearish Tone

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Gold Trades With A Bearish Tone

Gold (Xau/Usd) Trades With A Bearish Tone On Interest Rate Outlook

Gold (XAU/USD) is trading marginally lower on Tuesday after receiving a strong rejection at the $2315 resistance zone. It is safe to say that gold (XAU/USD) is trading with a bearish tone based on the USA's interest rate outlook.

The recently released NFP report was overwhelmingly positive and thus is weighing heavily on precious metals like Gold. According to one expert, the condition of the jobs market shows that inflationary pressure is still present.

50% Chance Of Rate Cut By Us Federal Reserve

As a result of the recently released NFP report, there is little reason for the Fed to go ahead with the September rate hike. This has increased the opportunity cost of holding assets such as Gold or Silver. So, that's yet another reason why the Gold is trading with a bearish tone.

NFP report has made it clear that the wage and employment growth is still positive. As a result, the US Fed will likely maintain the current levels of the interest rate.

For now, there's a 50% chance that the US Fed will cut the interest rate during September 2024. Before the release of the NFP, the odds were standing at 67%, which shows a change of only -17%.

look at the rest of the world shows that the interest rates will likely come down. This provides a supportive environment for the Gold (XAU/USD). Looking ahead, Gold (XAU/USD) traders will be looking forward to the CPI and the upcoming Fed meeting.

The technical analysis of Gold (XAU/USD) shows that it has retested the lower range near the $2315. It is safe to say that the precious metal is in a downtrend for the short-term.

The next target for the Gold (XAU/USD) bears is $2285, followed by the next stop at $2250 and then $2200. On the way up, the next important resistances for the Gold (XAU/USD) are $2400, $2450, and then the $2500 level.

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