Gold Drops Below $2,500 With a Stronger Dollar Value
Gold dropped below $2,500 per ounce on Monday, continuing its decline from last week's record highs due to a stronger dollar and rising bond yields. Recent economic data revealed that both US headline and core PCE prices rose by 0.2% in July, aligning with expectations. However, the annual inflation rates remained steady, contrary to predictions of an increase. This has dampened expectations for a significant 50 basis point rate cut by the Federal Reserve in September and reflects the economy's resilience to higher interest rates, following an upward revision to GDP. Despite this, markets are still forecasting 100 basis points in rate cuts over the Fed’s remaining three meetings this year. The European Central Bank is also anticipated to lower rates, given the significant slowdown in its inflation rate according to August's preliminary figures.
Technically, the first support level is at 2,485. If this level is breached, the next supports to watch will be 2,475 and 2,430. On the upside, the initial resistance is at 2,505; if this level is surpassed, the next targets will be 2,530 and 2,550.
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
2550 |
2530 |
2505 |
2485 |
2475 |
2430 |