Technical Analysis:
GOLD is currently trading around 2383 and we havent got liquidity from PDL yes and also we have a FVG of 1D around 2350 so we might firstt price tapping on FVG or price taking liquidity from PDL and then move towards all time high. Overall we are bullish on gold.
Fundamentals:
The upward bias for gold prices may remain, with the recent run in U.S. economic data offering room for the Fed to consider earlier rate cuts in 2024 while geopolitical tensions rock on," said IG market strategist Yeap Jun Rong.
Data this week showing signs of cooling inflation offered the Fed good news, but policymakers haven't openly shifted views yet about the timing of rate cuts investors are convinced will start this year. (FEDWATCH)
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
"Gold prices may correct lower as markets look to re establish the historical relationship between gold and the U.S. dollar. It goes without saying that uncertainty will likely persist in gold markets in coming months," Commonwealth Bank of Australia said in a note.
The dollar index DXY was down 0.7% for the week so far, making gold less expensive for other currency holders.
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