Today's market players will look forward to the US GDP data report for the second quarter of 2024 and the "Initial Jobless Claims" report scheduled for tonight.
The "bearish" pressure of the gold market since last Friday is seen to continue until today due to the impact of the Chinese economic market slowing down when the country's Central Bank (PBOC) implemented a cut in the country's loan interest rate by 5 to 20 basis points.
Following this action, China's investment market which is seen as unprofitable has a negative impact on gold demand when China is one of the main gold consuming countries in the world.
Turning to the New York market, a statement by former Fed committee member Dudley yesterday sparked new sentiment in the market when he indicated the possibility of the Fed cutting interest rates at next week's FOMC meeting.
This follows the implementation of the initial action to reduce the interest rate, which is seen as a "proactive" step by the Fed to avoid the risk of "recession" in the country's economy.
Following the investment sentiment, US treasury bonds were traded in the Asian trading session today.
A weak US GDP data report tonight could strengthen investors' confidence in the implementation of interest rate cuts by the Fed at the September 2024 FOMC meeting.
Technical Analysis
Based on the daily chart, the price level of $2,380 is seen as an important trading price level for the day.
If the price level is successfully broken, gold is seen to be able to trade low at least up to the price level of $2,317.
However, if $2,380 is successfully defended, $2,400-$2,445 is expected to be the next focus.
