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The Week Ahead – Gold Looks for Another Comeback

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XAUUSD holds the $2300 level
 Gold price fluctuates amid US economic data, influenced by uncertainty surrounding the Presidential Elections.

The yellow metal remains indecisive as upticks in US data see price action under pressure after the recent sell off. A boost in initial jobless claims was balanced by an upwardly revised GDP print that met expectations. This adds to the confusion as traders search for more precise data to establish a reliable timetable for the Fed to start acting. The prolongation of this uncertainty suggests more abrupt and erratic market moves, which could continue until after the Presidential Elections. Profit-taking is sending the price towards 2280 with 2360 being the immediate resistance.

USDCAD rate cut expectations trimmed
USDCAD Chart: USDCAD price reflects trimmed rate cut expectations.

With the BoC being the first G7 central bank to adjust its monetary policy, it is expected to continue into the rest of this year. However, with CPI figures this week, which exceeded the consensus, this trimmed the rate cut belief, with the market now pricing a higher chance that no changes will happen. That was enough to trigger a break at the 1.3700 zone as the Loonie looks for support going forward once the quarter-end flows fade out. The pair drifts towards 1.3780 with 1.3660 as the first support.

SPX500 pushes for another record

Last week, the S&P 500 pushed out a narrow gain as Wall Street looked ahead to fresh inflation clues as to when the Fed will begin cutting rates. Since other central banks have started the procedure, all eyes remain on the FOMC for any signal if this will happen this year. AI stocks ended in the red, raising questions on whether these sectors’ rallies can continue to sustain the rally in the back half of this year. The index is rising towards 5500, with 5350 as the first support.

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