Oddbean

The goldilocks scenarios for gold prices ========== Gold prices are retracing from their previous level today as traders take highly calculated risks ahead of the most important economic event, which will unfold later this week. Gold prices are down nearly 1% today, giving up most of their gains from yesterday as investors continue to digest mixed messages from the Fed members. The Chairman of the Federal Reserve hasn’t indicated that there is a serious need for another interest rate hike. On Friday, the most important economic report, the US NFP data, will be released. Traders are eagerly waiting for this report, with expectations set at 189K. The goldilocks scenario for the yellow metal will be if the report comes in much softer than anticipated, as it would suggest the Fed will initiate the rate-cutting process sooner rather than later. In all scenarios, traders need to monitor the 100 and 50-day simple moving averages in relation to the price action. If the price continues to trade above them, that would be a highly bullish signal, implying that the price is more than likely to move higher towards the resistance zone. However, if the price falls below the 100 and 50-day simple moving averages, then we are more than likely to see a correction, which could push the price towards the support zone. https://www.kitco.com/opinion/2024-06-04/goldilocks-scenarios-gold-prices