Daily Price Outlook

During the early European trading session, the USD/CAD pair continued its upward momentum, marking the third consecutive day of gains. It surged to its highest level since late March, driven by several key factors. Firstly, the Canadian dollar, often referred to as the Loonie, faced increasing pressure due to the declining oil prices, which pushed the USD/CAD pair higher. Another factor boosted the currency pair is the Federal Reserve's adoption of a more hawkish stance, which underpinned the US dollar and contributed to the USD/CAD pair gains.

Strength of the US Dollar and Its Impact on USD/CAD

The US dollar has been getting stronger lately, reaching a 10-month high. This is mainly because people believe that the Federal Reserve (Fed) will continue to be strict with its monetary policy. The US is also seeing strong economic data, which supports this belief. Cleveland Fed President Loretta Mester's comments have added to this, suggesting that the Fed will keep interest rates high for a while. As a result, the yields on the 10-year US government bonds are at their highest in 16 years. Additionally, with the market feeling cautious, investors are choosing the safe US dollar, which is helping the USD/CAD pair go up.

Challenges for the Canadian Dollar (CAD)

The Canadian Dollar (CAD) is facing challenges as people believe the Bank of Canada (BoC) won't raise interest rates anymore. This belief grew stronger when Canada's economy didn't grow in July, with manufacturing seeing its biggest drop in over two years. In June, the economy even shrank by 0.2%. This suggests the BoC might keep interest rates steady despite rising prices. In the meantime, the falling oil prices for four consecutive days are undermining the CAD and contributing the USD/CAD gains.

USD/CAD - Technical Analysis

The USD/CAD pair exhibited notable strength in its previous session, successfully exceeding our initial target of 1.3585 and advancing to our secondary objective at 1.3680. The currency pair has begun today's trading with a further ascent, breaking past this level, thereby reinforcing its dominant bullish trajectory for both intraday and short-term perspectives, paving the way towards a potential target of 1.3805.

Given the current dynamics, the bullish outlook remains robust and is further endorsed by the EMA50. However, it's crucial to mention that if the pair fails to maintain its position above 1.3680, it could reverse into a bearish correction.

Today, the anticipated trading bracket for USD/CAD is delineated between a support level of 1.3640 and a resistance threshold of 1.3780.

Daily Price Outlook

Despite a recent dip, the British Pound (GBP) is bouncing back as investors believe the UK is improving at managing the impact of higher interest rates from the Bank of England (BoE). It is worth noting that the BoE raised rates to 5.25% to protect the economy, but now they have hit a pause.

However, the GBP/USD pair is struggling, sitting below the 1.2200 mark, and has slumped for five weeks. Currently, it's around 1.2180, down 0.16% for the day. This is mainly due to the US Dollar (USD) gaining strength, which puts pressure on the GBP/USD pair.

US Inflation and Economic Indicators Impacting Currency Markets

According to the US Bureau of Economic Analysis, the PCE Price Index, a measure of inflation, rose by 3.5% compared to the same time last year in August, slightly up from July's 3.4%. The Core PCE Price Index, which the Federal Reserve closely watches, increased by 3.9% year-on-year, down from 4.3% in July.

Every month, the PCE Price Index and Core PCE Price Index went up by 0.4% and 0.1%, respectively, below what experts expected. Personal income and personal spending both increased by 0.4% month-on-month, as predicted.

Therefore, Fed officials have differing views on interest rates, with some suggesting caution while awaiting more data. Federal Reserve Chair Jerome Powell's upcoming speech could impact the US dollar and the GBP/USD pair.

BoE Policy and US Economic Data Impact GBP/USD

Conversely, BoE policymakers have mentioned that they could either raise or keep interest rates steady following their recent decision to pause rate hikes. However, the market expects the BoE to stick with its current monetary policy in the upcoming meeting, putting pressure on the British Pound (GBP).

With no significant UK economic data coming out this week, the GBP/USD pair's direction depends on the US Dollar's performance. On Monday, the US ISM Manufacturing PMI for September and hearing from Fed Chair Powell is in the spotlight.

Later in the week, the US ADP Employment Change and ISM Services PMI for September will be the focus. The focus will be on Friday's US nonfarm payrolls report.

GBP/USD - Technical Analysis

The GBP/USD pair recently reacted bearishly upon hitting the 1.2280 mark, suggesting a possible return to its primary downward trend. This is further illustrated by the bearish channel on the chart, pointing towards a potential descent to the 1.2110 level.

Today's outlook for the pair is bearish, a sentiment backed by the negative influence of the 50-Day EMA. However, the 1.2280 level remains pivotal. If the GBP/USD surpasses this resistance, we might witness a shift towards a bullish correction, targeting 1.2350. Expected trading for the day ranges between support at 1.2100 and resistance at 1.2250.

Regarding technical indicators, the RSI stands at 46, portraying a neutral to slightly bearish stance. An RSI below 50 tends to hint at a bearish sentiment, though it's still distant from the extreme oversold benchmark of 30.

In summary, while the short-term forecast for GBP/USD leans bearish, traders should watch the 1.2280 level closely. Surpassing this resistance could alter the immediate market trajectory.

Daily Price Outlook

During the early European session, the EUR/USD pair struggled to make significant gains and mostly hovered around the mid-1.0500s. However, the reason behind this was the growing belief that the Federal Reserve (Fed) might tighten its policies further, causing US Treasury bond yields to rise.

This, in turn, strengthened the US Dollar (USD) and weighed on the EUR/USD pair. Moreover, the possibility of the European Central Bank (ECB) postponing any additional interest rate hikes also weighed on the pair. On the flip side, a general risk-on sentiment in the market limited the demand for the safe-haven US Dollar, providing some support to the EUR/USD pair.

Market Sentiment Boosts EUR/USD, but ECB Rate Cut Speculations Linger

The global market sentiment is rising thanks to better-than-expected Chinese PMI data and the US government passing a temporary funding bill. This positive mood is keeping the US Dollar (USD) from surging and is giving some support to the EUR/USD pair. Conversely, many people think the European Central Bank (ECB) might cut interest rates in the future, keeping the Euro lower.

Recent data suggests that high inflation in the Eurozone might be slowing down, and there's even speculation about the Eurozone economy shrinking in the coming months. This has led to doubts about further ECB rate hikes, especially after the latest consumer inflation figures dropped from 5.3% to 4.5% in September.

US Dollar Strength Amid Fed's Tightening and Upcoming Data

The broad-based US dollar is generally strong because most believe the Federal Reserve (Fed) will keep tightening its policies. This makes the EUR/USD pair struggle to go up. The US PCE Price Index, a measure of inflation, increased as expected, showing a 3.5% rise in the past year through August.

However, the Core PCE Price Index, which the Fed prefers, eased slightly to 3.9% in August. Despite this, higher consumer spending and rising gas prices indicate that inflation will remain a concern. This means the Fed will likely stick to its tough stance, keeping interest rates high, which supports the US dollar and higher bond yields.

Looking ahead, traders seem cautious to place any strong bids as they are waiting for crucial US economic data coming at the start of the month. The week starts with the US ISM Manufacturing PMI release and a speech by Fed Chair Jerome Powell. These events will affect the US dollar's value and provide direction for the EUR/USD pair later in the North American session.

EUR/USD - Technical Analysis

The EUR/USD forex pair displays intriguing movements around the 1.0600 level, hinting at a mild bearish tilt. Yet, the stochastic indicator's positive momentum suggests possible bullish activity, targeting the 1.0675 region. However, any decline below 1.0550 could curb bullish prospects. Today's trading might range between 1.0520 support and 1.0660 resistance.

Technically, the 4-hour chart's pivot point is 1.0572, with resistances at 1.0658, 1.0739, and 1.0907; supports lie at 1.0488, 1.0405, and 1.0238. The RSI, at 45, shows neutrality leaning bearish.

The 50-Day EMA stands around 1.06082, potentially indicating the market's short-term trend. A notable downward trendline presents resistance at 1.0600; breaching this could change momentum. In summary, EUR/USD's short-term trajectory hinges on the 1.0600 mark, with a potential move towards the 1.0658 resistance if bullish momentum continues.

Daily Price Outlook

Gold (XAU/USD) price failed to stop its downward trend and dropped significantly at the end of September, decreasing by more than 4.5%. This marks the second consecutive quarterly decline, and it was also the largest weekly drop in over two years. However, the main reason behind this decline is the growing belief that the Federal Reserve will keep interest rates higher for a longer period. Fed's indicated that it may raise interest rates one more time by the end of the year. This move makes other investments more attractive than gold because gold doesn't provide any interest or yield. As a result, investors are moving their money away from gold, causing its price to fall.

Gold's Brief Friday Boost Fades Quickly Amid Fed Expectations

It's worth noting that gold prices received a modest boost last Friday, thanks to some economic data, specifically the PCE Price Index, coming out of the United States. However, this uptick was short-lived, primarily because this data failed to alter the prevailing belief that the Federal Reserve (Fed) would persist in implementing a more stringent monetary policy. Consequently, US Treasury bond yields went up again on Monday, which posed a challenge for gold since it doesn't yield any interest. Thereby, gold witnessed its sixth consecutive day of decline, plummeting to its lowest value since March 10th.

Gold Prices Decline Due to Increased Risk Appetite

In addition to the Fed's anticipated stringent approach, another key factor contributing to the decline in gold prices is the growing confidence among investors to adopt riskier investment options, often referred to as a "risk-on" sentiment. This shift in sentiment was spurred by some favorable economic data emerging from China, surpassing expectations, coupled with the passing of a temporary funding bill by the US government over the weekend. These developments have led investors toward riskier assets, diverting their attention away from safe-haven choices like gold.

Nonetheless, a couple of factors are acting as a cushion to prevent gold from experiencing a significant drop. Firstly, the US Dollar witnessed a slight dip, making gold relatively more attractive. Secondly, the Relative Strength Index (RSI) on the daily chart has indicated that gold was oversold, signaling that it might not be an opportune moment for bearish traders to make substantial bets against gold. These factors collectively work to ease the downward pressure on gold prices.

Looking forward, investors will keep their eyes on a potentially eventful week. It begins with the US ISM Manufacturing PMI release on Monday, but the real highlight is the US NFP report due on Friday. In simpler terms, these key figures could exert a significant influence on the trajectory of gold prices.

GOLD(XAU/USD) - Technical Analysis

On a 4-hour chart timeframe, Gold currently navigates crucial price levels with a pivot point set at $1,874. Looking at the immediate resistances, the first is situated at $1902, followed by higher resistances at $1955 and $2035. Conversely, for support levels, an immediate support is observed at $1820 with subsequent supports placed at $1793 and the more distant one at $1712.

The technical indicators shed further light on the asset's current stance. The Relative Strength Index (RSI) presents a value of 18. Such a low RSI suggests the asset is in an oversold condition, typically interpreted as a bearish sentiment. However, caution must be exercised as oversold conditions can occasionally precede a price rebound.

Another significant technical pointer is the 50-Day Exponential Moving Average (EMA). With a current value standing at $1889 and the price of Gold trading below this, it hints at a short-term bearish trend for the asset.

Turning to chart patterns, Gold's chart reveals the formation of Lower Lows. Additionally, the presence of the Three Black Crows candlestick pattern emphasizes a strong selling bias. Historically, these patterns are strong bearish indicators, suggesting that there might be further declines in the near term.

No fundamental news has been provided as part of this outlook. In conclusion, Gold's trend appears bearish, especially if it sustains below the $1858 mark. However, if it manages to breach this level, the outlook might tilt towards the bullish side. For the short term, given the prevailing bearish indications, it wouldn't be surprising to see Gold test the immediate support level at $1820 in the coming days. 

Daily Price Outlook

The global markets have been gaining momentum and rebounded on Friday, signaling a recovery for major US indices. The S&P 500, a key US stock gauge, turned around on Friday, gaining nearly 0.60% and settling just below $4,300. Although, this was a relief after a more than 5.0% drop from its September peak of around $4,540. Other major indices followed suit, with the Dow Jones Industrial Average (DJIA) rising 116 points to $33,666.34 (0.35%), and the tech-heavy Nasdaq Composite surging over 0.80% to $13,201.28.

As we all are well aware, the month of September has been challenging for stocks due to recession and government shutdown concerns, but the pause in selling and Treasury yield hikes allowed for this rebound, ahead of the critical US Personal Consumption Expenditure (PCE) Price Index release on Friday.

US Dollar Strength and Federal Reserve Focus

Investors are keeping a close eye on the strength of the US Dollar (USD). Despite lackluster US economic data on Thursday, their primary focus is on the Federal Reserve's efforts to support the USD. Just last week, the central bank cautioned that ongoing inflation in the US could lead to another interest rate hike before the year's end. This highlights the significance of the upcoming US Core PCE Price Index release. It will shape market expectations about the Fed's future actions, influencing demand for the USD and giving new impetus to various currency pairs.

Upcoming US PCE Inflation Measure and Market Expectations

Looking forward, the focus is on the upcoming US PCE inflation measure, expected to hold steady at 0.2% for August. This data is critical as it helps shape market expectations regarding the Federal Reserve's future moves. The Fed is keenly watching inflation, and its actions can impact the value of the US Dollar (USD) and, in turn, influence the broader financial markets.

S&P500 (SPX) - Technical Analysis

When conducting a technical analysis of the S&P500 for September 29, it's crucial to consider several key factors. The chart timeframe under scrutiny is 4 hours, with the pivot point being established at $4365.

In terms of resistance, there are three primary levels to observe: immediate resistance at $4420, followed by the next resistances at $4519 and $4569.

Conversely, support levels are delineated at $4269, with subsequent support points at $4217 and $4122. Analyzing technical indicators provides deeper insights.

The Relative Strength Index (RSI) currently stands at 43, which hints at a slightly bearish sentiment since an RSI value below 50 typically signifies a bearish market stance.

In the MACD readings, a value of 7 and a signal of -26 were recorded. Interestingly, the MACD line's position above its signal line suggests potential bullish momentum.

The 50-day Exponential Moving Average (50 EMA) is at $4360, and since the price is marginally above this point, a short-term bullish trend can be inferred. Chart patterns further reveal a Fibonacci Retracement, with the 38.2% level pinpointed at $4325.

This level's breach, in either direction, could offer clues about the asset's forthcoming trajectory.

In the short term, it's anticipated that the S&P500 will endeavor to test the resistance stationed at $4420.

Daily Price Outlook

Gold price (XAU/USD) has managed to stop its four-day losing streak, which had pushed it down to a near seven-month low of around $1,858-1,857 on Thursday. However, the declining US bond yields played a key role by pulling the US dollar back from its recent 10-month high. This, in turn, provided a boost to the precious metal. Furthermore, the looming threat of a US government shutdown on October 1, coupled with ongoing concerns about China's struggling property market, have further bolstered the appeal of gold as a safe-haven asset.

Factors Behind Recent USD Decline and Gold's Support

As we mentioned above, the broad-based US dollar has been losing some of its traction, and there are a few key reasons behind this. One significant factor is the retreating US bond yields, which have pulled the USD down from its recent 10-month high. This has, in turn, provided support to the price of gold.

Another factor influencing the USD's recent decline is the repositioning of trading positions in anticipation of the US PCE Price Index. This index, particularly its core measure, plays a key role in shaping the Federal Reserve's understanding of inflation. Notably, the outcomes of this data can significantly impact expectations regarding the Fed's upcoming policy decisions, and this, in turn, has implications for the USD's performance.

Anticipating September Manufacturing PMI

Looking forward, investors are keeping a close eye on the Manufacturing PMI report for September, set to be released on Monday. This report will provide important insights into the state of the factory sector. Expectations are that the PMI data will indicate the 11th straight month of contraction in factory activity.

GOLD(XAU/USD) - Technical Analysis

The price of gold has persistently declined, successfully breaching the $1,873.50 mark and culminating in a daily close below this threshold.

This trajectory has enabled it to reach our revised target of $1,860.00, and projections indicate a sustained downtrend, potentially touching new lows at $1,839.00 and extending to $1,810.00.

Given the prevailing conditions, the bearish sentiment is anticipated to dominate the foreseeable future, bolstered by the downward pressure exerted by the EMA50.

It's worth noting that a breakthrough above $1,873.50 could curtail the anticipated drop, prompting short-term recuperative endeavors.

Today's trading is predicted to oscillate between the support level of $1,845.00 and the resistance at $1,880.00.

Daily Price Outlook

During this European session on Friday, the USD/CAD currency pair experienced a resurgence in buying interest, successfully putting an end to its two-day losing streak. However, this uptick in momentum was due to the weakening of Crude Oil prices, which undermined the canadian dollar and acted as a supportive factor for the USD/CAD pair. Simultaneously, the US Dollar received a boost from the Federal Reserve's hawkish stance, further contributing to the pair's upward movement. Looking ahead, traders approached the market cautiously, refraining from taking strong positions, as they awaited crucial economic data releases, including the US Core PCE Price Index and Canadian GDP figures.

Crude Oil Price Drop and Its Impact on USD/CAD Pair

It is worth noting that the crude oil price dropped below the one-year high it had reached the previous day. This decline in oil prices is having an impact on the Canadian dollar, which tends to move in sync with oil, and it's giving a boost to the USD/CAD pair. However, the reason behind this fall in oil prices is the anticipation that Russia and Saudi Arabia may increase their oil production. This expectation is overshadowing the positive outlook for increased oil demand from China during its Golden Week holiday. As a result, traders are becoming less confident about the prospects of oil prices rising, particularly following this week's nearly 8% surge from the mid-$88.00s.

US Dollar Strength Supports USD/CAD Pair

Another factor boosting the USD/CAD pair is the overall strength of the US Dollar (USD). Investors are overlooking somewhat lackluster US economic data from Thursday and are instead focusing on the Federal Reserve's efforts to prevent the USD from declining. Just last week, the central bank warned that persistent inflation in the US might lead to at least one more interest rate hike before the year's end.

Looking forward, all eyes are on the release of the US Core PCE Price Index, which is the Fed's preferred measure of inflation. This data will influence market expectations regarding the Fed's next moves, impacting USD demand and providing fresh momentum to the USD/CAD pair. Traders on Friday will also be watching the monthly Canadian GDP figures and the dynamics of oil prices for short-term trading opportunities.

USD/CAD - Technical Analysis

The USD/CAD currency pair has initiated a downward trajectory, exerting pressure on the pivotal support level at 1.3480. In light of this movement, it is prudent to remain neutral until a clearer directional signal emerges, which could be ascertained through either a breach of the aforementioned support or a surpassing of the 1.3520 resistance level.

It's crucial to underscore that if the support is compromised, it could pave the way for the currency pair to revert to a bearish trajectory, targeting subsequent levels at 1.3400 and then potentially 1.3359. Conversely, if the pair manages to overcome the resistance, it could potentially signify the rejuvenation of a bullish trend, with the next significant objective positioned at 1.3585.

For today's trading activities, the anticipated range is demarcated between the support at 1.3410 and the resistance at 1.3560. The prevailing sentiment for the day remains neutral.

Daily Price Outlook

Despite positive Consumer Price Index (CPI) numbers, the AUD/USD pair failed to gain any positive traction and slipped below the 0.6350 mark. This decline coincided with the release of the Retail Sales report for August, which showed a modest 0.2% growth, falling short of the expected 0.3% increase. Adding to the downward pressure, the US Dollar continued to strengthen, driven by higher US Treasury yields and positive economic indicators. These factors combined to weigh down on the AUD/USD pair.

Australian CPI Rebound and AUD Challenges

It's important to highlight that Australia's monthly Consumer Price Index (CPI) rebounded in August, primarily due to an increase in energy prices. This uptick in inflation has stirred up expectations of a potential interest rate hike by the Reserve Bank of Australia (RBA). Surprisingly, though, the Australian Dollar (AUD) didn't perform well despite these encouraging CPI figures.

Notably, the AUD is currently facing downward pressure, largely because of a risk-off sentiment in the market. Investors are growing more risk-averse, which has had a dampening effect on the currency's performance. Furthermore, the declining prices of commodities have been a significant factor holding back the AUD/USD pair from making substantial gains.

US Dollar Strengthens Amidst Positive Economic Developments and Fed Statements

Across the ocean, the US Dollar Index (DXY) continues its impressive rally, reaching its highest point since December. However, this surge in the US Dollar can be attributed to some positive economic developments in the United States and robust performance of US Treasury yields, which are breaking records. Further adding to the bullish sentiment surrounding the USD are the confident statements coming from Federal Reserve (Fed) board members. Neel Kashkari, President of the Minneapolis Federal Reserve, has hinted at the possibility of future interest rate hikes. However, he has also left the door open for rates to remain unchanged if rate cuts are delayed even further.

Hence, the strengthening US Dollar due to robust economic factors and potential interest rate hikes could put downward pressure on the AUD/USD pair.

Global Economic Concerns and US Data Awaited: Impact on Currency Markets

Another factor putting pressure on the AUD/USD pair is the concerning situation in China. Evergrande, the world's most heavily indebted property developer with over $300 billion in debts, is grappling with a severe crisis. The chairman of the company is even under police scrutiny, adding to the overall uncertainty.

Traders are also closely monitoring the upcoming release of the US Gross Domestic Product Annualized, which is expected to remain at 2.1%, scheduled for Thursday. On Friday, the Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred gauge for consumer inflation, is anticipated to drop from 4.2% to 3.9%.

AUD/USD - Technical Analysis

The AUD/USD pair exhibited a distinct downtrend, nearing our initial forecasted target of 0.6330. We project a continued bearish momentum with an aim to reach the subsequent level at 0.6275. This outlook is underpinned by the bearish pressure exerted by the EMA50.

It's imperative to note that the persistence of this bearish trend hinges on the price maintaining its position below the 0.6400 mark. For today's trading landscape, we anticipate a range between a support level at 0.6300 and a resistance threshold at 0.6400.

Daily Price Outlook

During the European session, the USD/JPY currency pair made a modest retreat as it tried to break the important 150.00 resistance level on Thursday. This move aligns with the US Dollar Index (DXY), which saw some profit-taking after hitting a fresh 10-month high at 106.80. Early in the Asian session, USD/JPY rose to 149.50, benefitting from higher Treasury yields, positive US economic data, and a cautious mood among investors. At the same time, the US Dollar Index (DXY) reached 106.65, its highest point since November. Notably, the 10-year Treasury yield settled at 4.60%, its loftiest level since 2007.

US Durable Goods Orders Rebound, Impacting USD and JPY

According to the US Census Bureau's report on Wednesday, Durable Goods Orders in August rebounded, increasing by 0.2% month-on-month (m/m) after a 5.6% drop in the previous report, defying expectations of a 0.5% m/m decline. Durable Goods Orders, excluding transportation, also performed better than expected, rising by 0.4% m/m against a forecasted 0.1% increase. Moreover, Core capital goods orders saw a notable rise of 0.9%, surpassing the market consensus of 0% following a previous 0.4% drop.

This data prompted a stronger US Dollar (USD) performance, weighing on the Japanese Yen (JPY). Investors remain cautious amid concerns of prolonged high-interest rates and a potential US government shutdown, although Federal Reserve (Fed) Chair Jerome Powell's upcoming speech could moderate the USD's gains if it takes on a less hawkish tone.

Potential Bank of Japan Intervention Could Strengthen Japanese Yen

The Japanese Yen might get stronger due to potential intervention by the Bank of Japan (BoJ). Finance Minister Shunichi Suzuki has emphasized that they are ready to take action if the foreign exchange market becomes too volatile. He also mentioned that they are closely watching currency movements. In Japan, Suzuki expressed his worry about the currency exchange rate and stressed the need for quick action. This cautious stance from Suzuki has made traders cautious as well, especially those considering bullish positions on the USD/JPY pair.

Looking ahead, investros are keeping an eye on important economic indicators this week, such as the US weekly Jobless Claims, second-quarter GDP revision, and Pending Home Sales data. At the end of the week, focus will shift to the Core PCE Price Index, a key measure of consumer inflation favored by the Fed, set to be released on Friday.

USD/JPY - Technical Analysis

The USD/JPY pair has sustained its upward trajectory, approaching our newly-set target of 150.00. This momentum is consistently underpinned by the EMA50, amplifying the prospects of an enduring bullish stance in both intraday and short-term contexts. It's worth noting that breaching the aforementioned level could further propel the bullish momentum, targeting successive key levels at 151.00 and subsequently 151.85.

Our forecast remains bullish for the forthcoming sessions, contingent upon the pair not descending and sustaining below the 148.40 mark.

Today's projected trading boundaries are delineated between a support at 148.70 and a resistance at 150.20.

Daily Price Outlook

Despite the ongoing risk-off mood in the market, gold prices (XAU/USD) have continued their downward trajectory, failing to find support. However, this decline can be attributed to the bullish US dollar and the rise in US Treasury bond yields, both of which have made gold appear less attractive to investors. On the flip side, the risk-off sentiment in the financial markets, driven by concerns about China's troubled real estate sector and the looming possibility of a US government shutdown, has prompted some investors to seek refuge in gold as a safe haven for their investments. Hence, this shift in sentiment is considered one of the key factors that may help gold price to limit its declines.

Gold's Challenges Amidst Fed Expectations and Economic Reports

It is worth noting that many people are assuming that the Federal Reserve could pose challenges for the gold prices. However, this belief arises from the idea that if the Fed adopts a more restrictive monetary policy, it could lead to a strengthening of the US dollar and an increase in bond yields, both of which exert downward pressure on gold price.

Moving on, traders are awaiting the release of a key inflation indicator, the US Core PCE Price Index, scheduled for Friday. This data will provide clear understandings into the Fed's potential actions regarding interest rates. Furthermore, economic reports like the US Q2 GDP and weekly jobless claims have the potential to impact the performance of the US dollar. Consequently, the overall sentiment in the financial markets will play a key role in shaping short-term trading opportunities for gold.

Market Concerns and Economic Factors Impacting Gold

Moreover, investors have been growing increasingly concerned about a couple of significant factors that are putting pressure on gold. Firstly, there are worries surrounding China's property market and the rising costs of borrowing, both of which are acting as barriers for gold's upward movement. Adding to this, the recent hawkish comments made by Minneapolis Fed President Neel Kashkari are raising expectations that the Federal Reserve might implement at least one more interest rate hike before the year's end. Furthermore, the release of better-than-expected US Durable Goods Orders data suggests that the Fed is likely to maintain higher interest rates for an extended period. Thus, the hawkish Fed comments and strong economic data can put further pressure on gold prices.

GOLD(XAU/USD) - Technical Analysis

The gold price has stabilized at the $1873.50 mark following a pronounced downturn experienced the previous day. It's anticipated that should this level be breached, we could see further downward momentum targeting the $1860.00 mark, followed by the $1845.00 threshold.

Given this context, a bearish trajectory is projected for the near term. However, it's pivotal to note that any inability to move below the $1873.50 level could curtail this decline, potentially initiating a bullish adjustment with objectives set at the $1890.00 and subsequently the $1900.00 marks.

For today, the anticipateThe gold price has stabilized at the $1873.50 mark following a pronounced downturn experienced the previous day. It's anticipated that should this level be breached, we could see further downward momentum targeting the $1860.00 mark, followed by the $1845.00 threshold.

Given this context, a bearish trajectory is projected for the near term. However, it's pivotal to note that any inability to move below the $1873.50 level could curtail this decline, potentially initiating a bullish adjustment with objectives set at the $1890.00 and subsequently the $1900.00 marks.

For today, the anticipated trading range is delineated between a support at $1855.00 and a resistance at $1890.00.d trading range is delineated between a support at $1855.00 and a resistance at $1890.00.