Gold price (XAU/USD) experiences a pullback after failing to sustain above $2,400, driven by several factors:
- Geopolitical Relief: Easing tensions between Iran and Israel reduce safe-haven demand for Gold.
- Rising Bond Yields: Higher US Treasury yields, fueled by expectations of a delayed Fed rate cut, make Gold less attractive as a non-yielding asset.
- Stronger USD: A consolidating US Dollar Index (DXY) around 106.00 maintains some support for the Dollar, influencing Gold prices.
- PCE Data Focus: Investors await the upcoming US core PCE data release, a key inflation gauge that could further impact Fed rate expectations.
- US GDP Outlook: Thursday’s preliminary Q1 Gross Domestic Product (GDP) data could offer clues about US economic growth and influence the Fed’s stance on interest rates.
Technical Analysis:
- Mean Reversion Pullback: Gold retreats towards the 20-day Exponential Moving Average (EMA) near $2,315 as a potential correction after the recent rally.
- Key Support Levels: April 5 low ($2,268) and March 21 high ($2,223) offer critical downside support zones.
- RSI Indicator: The Relative Strength Index (RSI) cools down, but remains within the bullish range, suggesting the overall outlook remains positive for Gold.
