Article by: ETO Markets
Investors' concerns over the timing of the Federal Reserve's much anticipated rate-cutting cycle have kept the precious metal on the defensive. Because of strong consumer spending and stable labour market conditions, the last leg of inflationary pressures in the US is proving to be much more resistant than initially believed, which is diminishing expectations of an early rate-cut announcement from the Fed.
The 4-hour chart indicates that the recovery appears to be corrective. With the 20-SMA solidly sliding south below the aimless longer ones, XAU/USD maintains a significant distance below all of its moving averages. Technical indicators are finally rising from oversold readings, but weakly and well below their midlines. To have a chance of regaining its bullish strength, the XAU/USD would need to rise above $...