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Gold price<\/a> is virtually unchanged late in the North American session, set to end the day around familiar levels below $2,400 after hitting a daily high of $2,432. Risk-aversion and rising US Treasury bond yields seem to have capped the non-yielding metal rally, which usually retreats as investors flock to US Treasuries.<\/p>\n Bullion traders lifted spot prices while US Treasury bond yields edged lower ahead of a US five-year note sale auction. Afterward, the US 10-year Treasury note coupon rose two basis points to 4.274%, a headwind for the golden metal. Meanwhile, the buck remains on the back foot, yet losses are trimmed as measured by the US Dollar Index<\/a> (DXY). The DXY edges down 0.08% at 104.38.<\/p>\n Risk-off mood helped Gold buyers lift spot prices to a three-day peak, as traders had fully priced in a 25-basis point (bps) rate cut by the Federal Reserve<\/a> at the upcoming September meeting.<\/p>\n The CME FedWatch Tool shows odds of a quarter of a percentage point cut at 100%, while data from the Chicago Board of Trade (CBOT) sees market participants estimate 53 bps of easing for 2024, via data of the December 2024 fed futures rate contract.<\/p>\n Data-wise the US economic docket revealed the Goods Trade Balance for July printed a narrower deficit than expected. Meanwhile, business activity as measured by the Purchasing Managers Index (PMI) report revealed by S&P was mixed, with manufacturing contracting for the first time since first time since December 2023.<\/p>\n Precious metals were also boosted by India\u2019s decision to cut import taxes from 15% to 6%.<\/p>\n Traders brace for the release of the first reading of the Gross Domestic Product<\/a> (GDP) for Q2 2024 in the United States (US) on Thursday. This would be followed by the release of the Fed\u2019s preferred gauge for inflation, the Personal Consumption Expenditure (PCE) Price Index figures for June.<\/p>\n After forming a \u2018bullish haram,\u2019 Gold prices hit a three-day peak above $2,430 but have retreated below the July 23 high of $2,412, hinting at buyers’ lack of strength. A daily close below the latter could expose XAU\/USD to further selling pressure, though US data would drive price action on Thursday and Friday.<\/p>\n The Relative Strength Index (RSI) is bullish, although the slope has turned flat, indicating buyers’ and sellers’ lack of direction and commitment.<\/p>\n XAU\/USD needs to clear Wednesday\u2019s peak at $2,430 for a bullish continuation. Once surpassed, the next resistance would be $2,450 before challenging the all-time high of $2,483. Up next would be the $2,500 figure.<\/p>\n Conversely, if XAU\/USD tumbles below the July 22 low of $2,384, a deeper correction is on the cards. The next support would be the 50-day Simple Moving Average (SMA) at $2,359. Once sellers clear the 100-day SMA at $2,315, further losses are seen before falling toward $2,300.<\/p>\n <\/a><\/p>\n The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis<\/a>, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation\u2019s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year\u2019s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.<\/p>\nDaily digest market movers: Gold price remains glued to the $2,400 figure<\/h2>\n
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Technical analysis: Gold price falls below Tuesday\u2019s high<\/h2>\n
Economic Indicator<\/h2>\n
Gross Domestic Product Annualized<\/h3>\n