Gold Price Rises on Friday Amid Profit-Taking and Anticipation of US Data

Gold prices increased on Friday as traders took profits from a sharp decline over the past two days, which saw a nearly 3% drop. The significant downturn on Thursday was triggered by strong US Q2 GDP numbers.

The top of the daily Ichimoku cloud provided robust technical support, repeatedly containing the downside attacks and protecting the current levels.

Early signs of recovery are emerging, supported by fresh positive momentum and an oversold stochastic on the daily chart. The near-term action is underpinned by the daily cloud, but more effort is needed to improve the outlook and confirm a positive signal.

Bulls need to break through the $2390/$2400 zone (20DMA / psychological level) to establish a higher base around $2554, which would signal a continuation of the recovery and shift the near-term focus higher.

However, gold is on track for a second consecutive weekly loss, with weakening weekly studies likely to keep the downside vulnerable.

The upcoming US PCE data, the Fed’s key inflation measure, is expected to provide more insight into the potential start of a rate-cutting cycle by the US central bank. This data is anticipated to generate fresh direction signals for the yellow metal.

Res: 2379; 2390; 2400; 2413
Sup: 2363; 2347; 2338; 2324