Gold Overbought as Key US Data Looms

Gold’s 4-hour RSI has climbed above 70, indicating overbought conditions and suggesting caution for buyers. A corrective move could see prices test support around $2,613.

This week, gold markets face two major US economic releases following the Federal Reserve’s surprise 50-basis-point rate cut last week. U.S. GDP data is due Thursday, followed by Core PCE figures on Friday.

Danielle DiMartino Booth of Quill Intelligence suggests the Fed’s larger-than-expected cut reflects concerns over possible negative GDP revisions, raising doubts about a smooth economic “soft landing.”

Federal Reserve Chair Jerome Powell is also scheduled to speak on Thursday at the 2024 U.S. Treasury Market Conference, but his comments may take a backseat to these critical economic data releases.