Gold remained stable, avoiding a downside breakout after US inflation data were below expectations. This pushed investors into defensive positions due to potential tariff issues, even with a likely delay in tariff deadlines.<\/p>\n
Amid decreasing real yields due to possible Fed easing, gold is expected to maintain an upward trend. However, any hawkish shifts in interest rate expectations might cause short-term corrections.<\/p>\n
On the daily chart, gold rebounded from a key upward trendline, with buyers targeting a rally towards the 3438 resistance, while sellers eye a break below the trendline to approach the 3120 level. The 4-hour chart shows a minor resistance around 3377, with sellers anticipating a potential price dip below the main trendline, while buyers aim for a rise to the 3438 level.<\/p>\n
In the 1-hour chart, a minor upward trendline supports bullish momentum. Buyers are likely to defend this trendline targeting a break beyond minor resistance, whereas sellers will look for a dip below this line aiming for the major trendline breakout.<\/p>\n
Upcoming events include Fed Chair Powell’s speech, US Jobless Claims, and the flash US PMIs, potentially affecting gold prices.<\/p>\n
We see the recent US Consumer Price Index data, which came in cooler than expected at 3.3% annually, as a signal for cautious bullishness. Derivative traders could respond by using strategies like buying call spreads, which bet on a price increase while defining downside risk. Market pricing, according to the CME FedWatch Tool, now shows over a 65% probability of an interest rate cut by September, reinforcing this upward bias.<\/p>\n
The prospect of tariffs adds another reason to maintain exposure to gold’s potential rise. Historically, during the 2018-2019 trade disputes, gold rallied over 20% as global uncertainty mounted, offering a clear precedent for the current situation. This suggests that selling out-of-the-money put options is a viable strategy to collect premium, as these geopolitical concerns should provide a floor for the price.<\/p>\n
From our perspective, the major upward trendline remains the critical line in the sand for any strategy. A bull put spread, with the short strike placed safely below this trendline, is an attractive way to generate income while maintaining a bullish view. Should the price break below that key level, it would be our signal to exit bullish trades and consider buying puts to target a drop toward the 3120 support zone.<\/p>\n
Upcoming commentary from Powell and the latest jobless claims figures will likely create short-term price swings. With initial claims recently hitting a 10-month high, any sign of further labor market weakness could fuel a rally through the minor 3377 resistance. Traders could position for this by purchasing short-dated call options to capitalize on a potential breakout with limited capital at risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold holds steady as investors weigh Fed outlook, inflation data, and looming tariff uncertainties impacting momentum.<\/p>\n","protected":false},"author":62,"featured_media":16978,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26849"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26849\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16978"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}