The "bullish" momentum of the gold market is expected to be hindered "if" the American Dollar index performs a "strong rebound" due to political risk factors in the country.
In addition, the increase in demand for American treasury bonds is also able to limit the rise in gold prices.
Gold has been trading higher since the beginning of the week following the US-China trade conflict.
At the trading session of the New York market yesterday, America has reported to implement the strengthening of "semiconductor" trade restrictions between China and the country, following which the stock market of companies using "Chips" such as Nvidia and Apple has fallen sharply.
The gold market is also seen to be experiencing the same effect as the economic restrictions are seen to affect the production and demand of gold from the industrial sector.
Market players will be focused on the "Jobless-Claims" economic data report tonight and also some "speech" that will take place by members of the FED committee.
The market now expects the full implementation of interest rate cuts in September 2024.
Technical Analysis
Based on the daily chart, the price of gold is seen to still be able to increase around the $2,500 price level if yesterday's highest price level of $2,484 is successfully broken through.
But if it's the other way around, $2,450 will be tested and the strong selling pressure of gold can push the price down to $2,370.
Geopolitical pressure and the report of the FED statement that will be reported tonight and tomorrow will shape either the demand or the sale of the gold market.
