Technical Analysis:
Currently trading around 2346 price gave a good mss to the upside again on 15 min time frame . We might see price going around 2370 levels again and consolidate around this level or clear the liquidity residing above ATH. After that if price forms any structure shift we will look for buying of selling opportunities in gold.
Fundamentals:
"Gold's relatively flat performance today shows that markets remain on tenterhooks and aren’t willing to take an outsized view of how the incoming US data will pan out," said Han Tan, chief market analyst at Exinity Group.
Investors are now looking forward to the U.S. producer price index data that is scheduled for release at 1230 GMT, followed by the consumer price index report on Wednesday.
The Federal Reserve Bank of New York said in its latest Survey of Consumer Expectations that respondents project inflation a year from now at 3.3% from March's 3%, while inflation three years from now is seen moderating to an expected 2.8% rise from the prior month’s 2.9%.
Traders expect the U.S. central bank to start its easing cycle in September. Lower interest rates reduce the opportunity cost of holding gold. (FEDWATCH)
"Signs of easing price pressures may further bolster hopes for Fed rate cuts in 2024, which could give gold fresh impetus to return closer to its record high," Tan added.
On the geopolitical front, Israeli tanks, supported by heavy air and ground fire, advanced deeper into Jabalia in the northern Gaza Strip on Monday, according to residents and Hamas media. Gold is considered a safe-haven asset, with demand rising in times of distress.
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