Short-covering may have provided additional support to gold prices in recent trading sessions. Previously, traders bet on aggressive rate hikes from the Fed. However, potential weakness of the job market changed the picture. Fed may be cautious as the central bank must also provide support to the job market.
U.S. dollar was mostly flat against a broad basket of currencies in holiday-thinned trading session. The dynamics of the American currency had no impact on gold markets today. Treasury markets were closed in observation of the Independence Day holiday.
Currently, gold is trying to settle above the resistance level at $4180 – $4200. In case this attempt is successful, gold will head towards the next resistance, which is located in the $4360 – $4380 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, a move below the $4100 level will push gold towards the nearest support level at $4020 – $4040.
Silver Rallies As Traders Bet On Dovish Fed