Gold prices this morning showed no significant volatility and appear to be moving sideways, compressing in anticipation of a potential breakout.
The reason for this cooling phase is believed to be last night’s jobless claims data, which came in much better than expected. This caused rate-cut expectations to drop from 89% to 87%, making investors more cautious in their trading decisions.
Today is Friday, and we will have the PCE data, which will provide additional signals on inflation. From there, the market will gain more clues on whether the FED needs to continue cutting interest rates, especially as the labor market—its biggest concern—has been showing signs of improvement.
Therefore, the market today will mainly focus on the PCE data and wait for a strong breakout to follow the short-term trend.
Trí Hùng
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