Gold prices rose in morning, remaining in sight of record highs as safe haven demand for the yellow metal remained upbeat in anticipation of more cues on U.S. inflation and interest rates. Gold surged to record highs above $2,350 an ounce on Monday, but came down slightly from those levels as the dollar and Treasury yields remained strong. Safe haven demand for gold also remained strong amid worsening geopolitical conditions in the Middle East and Russia. Markets were now focused squarely on consumer price index inflation data for March, which is due on Wednesday. The reading is expected to show U.S. inflation remaining sticky, and also comes just days after a blowout nonfarm payrolls report. Traders had severely cut their expectations for a June rate cut by the Fed in recent sessions. Beyond the CPI data, the minutes of the Fed’s March meeting are also due on Wednesday. While the bank had offered up some dovish signals on interest rate cuts during the meeting, a string of Fed officials speaking after the meeting warned that sticky inflation will delay any potential rate cuts this year. Fears of worsening geopolitical tensions in the Middle East, especially after Iran threatened military action against Israel, kept safe haven demand for gold largely upbeat. Continued clashes between Russia and Ukraine also factored into safe haven demand, with recent strikes on the Zaporizhzhia nuclear power plant causing global alarm.
Spot gold rose 0.2% to $2,344.31 an ounce, while gold futures expiring in June rose 0.5% to $2,363.0 an ounce. Spot gold hit a record high of $2,354.09 an ounce on Monday.
CURRENTLY GOLD IS MOVING ON UP TREND.
Expecting correction up to 2338.77
Today’s important levels for trading are 2309.77, 2331.81, 2360.83 and 2382.87
Trading Strategy for today: Buy on Dip
Trade setup:
Pullback Buy around 2339.00 Deeper Buy around 2329
Safe swing sell below 2317.50
Safe swing buy above 2353.50