- Gold’s 4-hour RSI is above 70, signaling overbought conditions, which suggests caution for buyers, with potential downside risks to test the $2,613 level if the corrective trend gains momentum.
Gold is set to face two major US economic data points this week, following last week’s surprise 50-basis-point interest rate cut from the Federal Reserve: U.S. GDP figures on Thursday and Core Personal Consumption Expenditures (PCE) on Friday
Danielle DiMartino Booth of Quill Intelligence argues the Fed’s larger-than-expected cut signals concerns over potential negative GDP revisions, casting doubt on the chances of a “soft landing” for the U.S. economy.
Jerome Powell is also going to be speaking on Thursday at the 2024 U.S. Treasury Market Conference. But his remarks may take a backseat to the data.
The 4-hour Relative Strength Index (RSI) has climbed above 70, signaling overbought conditions and suggesting caution for gold buyers. If the metal turns corrective, the price could test $2,613.
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