Gold Consolidates Lower, Tomorrow Is the BIG Day
Like in the scenario described in our Market Weekly Overview, #XAUUSD fell below the edge of the small consolidation, which was happening in the upper half of the main one.
We advised you to trade short, in case this scenario manifested. We were right, gold fell about $30 from that point. Now, the precious metal is lowering towards a critical level, $2880/oz, which, if breached, could spark an even stronger correction.
Key US economic data, such as GDP growth (due today, February 27, 15:30 MT Time) and Personal Consumption Expenditures (PCE) due tomorrow. Both of them will be of the utmost importance in gauging XAUUSD’s future dynamics.
Weaker economic data will likely suggest a faster pace and increased probability for rate cuts, while stronger data will support the idea of a more hawkish Fed. The first scenario is bullish for the metal, and the second one is bearish.
In any case, this is the moment where it all converges. New 25% tariffs on the EU have been proposed, old ones against Mexico and Canada have been postponed again, while riskier assets, like Bitcoin and stocks, have begun retracing to the downside.
In the long term, gold remains bullish. For the medium term: Monitor what statistics has to say these two days!
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