Gold prices rose slightly on Monday due to dollar weakness caused by revised US inflation expectations.
The yellow metal price fell to a two-month low during the previous week due to reports of an unexpected rise in US consumer prices. However, the metal partially rebounded after the negative retail sales figures for January were published.
Federal Reserve Bank of Atlanta President Raphael Bostic expressed the need for more data to confirm that inflationary pressures are easing. However, he also pointed to the regulator's willingness to cut rates in the coming months.
According to Natasha Kaneva, Head of Global Commodities at JPMorgan, several conditions have to be met to open long positions in the precious metal. Thus, inflation should fall below 3%. The projected changes in the US economy also need to be taken into account. These factors make the outlook for the gold market in 2024 highly tactical, Kaneva added.
Investors are eagerly awaiting the release of the Federal Open Market Committee minutes this week, which could provide additional information about future monetary policy.
Traders have shifted expectations for US interest rate cuts from March to June. The current market estimates show a 77% probability of rate cuts in June, according to the CME FedWatch tool.
Due to the Presidents’ Day holiday, most US markets will be closed on Monday.
Gold prices are forming a broad correction on the H4 chart. The Bulls Power indicator volumes (standard values) remain in the positive zone, showing an upward movement.
Signal:
The short-term outlook for GOLD suggests buying.
The target is at the level of 2065.00.
Part of the profit should be taken near the level of 2040.00.
A Stop-loss could be set at the level of 1985.00.
The bullish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
