Continuing a decrease in value since the start of the year, the gold price is nearing the $2,000 level as the chance for a March Federal Reserve interest rate cut decreases. Indeed, the value of the yellow metal has fallen to its lowest since mid-December. Moreover, US economic data showcasing resiliency has negatively affected the asset price.
Currently, gold is trading for $2,004, and is down more than 1% over the last 24 hours. Subsequently, there are expectations that a bearish momentum could continue as its value drops to the $2,000 mark in the short term. There is little expectation of incoming data that could present an immediate reverse upward.
Gold Falling Back to $2000 Amid Bearish Outlook
For the last few months of 2023, the price of gold had seen a massive resurgence. Reaching an all-time high of $2150 in December, the asset was benefitting from uncertainty within the US economy. However, just a few weeks into 2024, the metal has not continued its positive development.
Currently, the gold price is nearing the $2,000 mark as the chance for a March Fed Rate Cut has dropped. Specifically, FX Street notes that the chance for a rate cut in two months has dropped from 70% at the end of 2023, to 52% currently. Subsequently, the decline has had a massive effect on gold’s value overall, feeding the bearish outlook of the metal.
Also Read: What Will Gold Price Be at the End of 2024?
That has partnered with optimistic US economy data to further increase the slide in value for gold. Specifically, retail sales noted an increase along with industrial production. Moreover, macroeconomic data showcased resiliency that coincided with hawkish sentiments delivered from Fed officials regarding the previously mentioned March rate cut.
Conversely, the value of gold is facing support levels at $2,049. Moreover, there are resistance levels in place for the $2,062 level as technical indicators are showing downward pressure for its value. Specifically, there is the expectation that a bearish breakout could occur, bringing forth a fall to the $2,000 threshold.