Gold prices were traded high in the New York market session yesterday immediately after the release of the PCE inflation data report. The data report yesterday assessed the annual inflation trend in America is decreasing.
As such, market players' hopes for the Fed to implement an interest rate cut in June 2024 are getting brighter.
The price of gold is seen to have failed to break through the $2,050 price level following several "Hawkish" statements issued by several Fed committee members after the release of the PCE inflation data report.
The focus of this week's closing trade will be on the "US ISM Manufacturing PMI" data report that will be published tonight.
This data report is able to provide additional guidance on the timing of the interest rate cut.
The ISM Manufacturing PMI will provide a current picture of the labor market situation in America.
Technical Analysis
Based on the daily chart, yesterday's closing price is seen to be above the $2,040 level. It is seen to give the impression that the gold market has the potential to be traded high.
Even so, the $2,050 price level will be a current barrier for gold to continue trading higher. If that level is successfully broken, gold can be traded at least to the price level of $2,063.
On the other hand, gold needs to maintain the price level of $2,034 to continue to remain "bullish".
If this price level fails to be maintained, gold is expected to continue to trade low until the level of $2,025 and the price level of $2,014 is expected to be the focus price for gold buyers.
