Daily Market Report - Friday, Feb 24, 2023


Gold price is pulling back modestly Friday Morning after hitting the crucial support area of $1818/17 once again on Thursday. The precious metal has been under intense selling pressure throughout this month. The bearish sentiment is driven by the release of hotter-than-expected US inflation data and hawkish comments from Federal Reserve policymakers. The recent FED minutes also showed policymakers agreed rates would need to move higher in the near term.

Moving ahead, today the gold traders and investors should closely monitor the release of US personal income and spending data because the Federal Reserve views the PCE index as the best barometer of inflation trends.


The major indices of the US stock markets showed a lot of volatility and closed with significant losses on Thursday after the comments from the Federal Reserve Bank of New York President John Williams. While as we are heading to the final days of this month global cues such as the FED's hawkish stance, trends in dollar strength and US PCE inflation data are expected to drive investors' sentiments in the remaining days of this week.


Crude oil prices ended slightly higher following the last few days’ strong bearish move despite the release of weak oil inventory data from API and EIA. On Thursday, the EIA inventory data showed the US crude inventories rose by 7.65 million barrels last week to the highest level since May 2021.


In the currency market, the Euro and the Yen were the main losers among major currencies in early European trade on Friday, extending losses as the dollar extended the gains in the hope that the Federal Reserve might consider a 25-bps rate hike in the March meeting. Commodity-linked currencies such as the Australian and Canadian dollars hit a fresh weekly low against the US dollar on Thursday.


Gold price hovers near the monthly lows and remains volatile as the markets are unsettled by swings in volatility caused by the latest US inflation data and Federal Reserve meeting minutes. During the early Asian session, the metal slightly recovered back to above $1825 but as of this writing, the metal reversed back to near $1820 after the buyers failed to hold upside momentum.

Economic Outlook

On the data front, the US economy grew slightly less than reported in the final three months last year, the Commerce Department said Thursday. The GDP data showed the US economy expanded an annualized 2.7% on quarter in Q4 2022, slightly below 2.9% in the advance estimate.

Moving ahead today, the important events to watch:

US – Personal income and spending: GMT – 13:30

US – Michigan consumer sentiment: GMT – 15:00

Coronavirus update:

Worldwide, more than 675 million people have been confirmed infected and more than 6.8 million have died. The United States has confirmed over 104 million cases and has had more than 1.14 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

The currency pair trades below the key support area of 1.0600. If the bearish momentum continues the next downside levels to watch are 1.0560 and 1.0530. On the flip side, the immediate resistance is at 1.0630 and then 1.0670.

The important levels to watch for today: Support- 1.0560 and 1.0530 Resistance- 1.0630 and 1.0670.

GOLD: For gold today, the key support for today is nearly $1816. In case it breaks below this level, it will head towards the next support level which is located near $1810/00. On the flip side, the resistance for the metal remains above $1830, and any break-over targets $1835/40.

The important levels to watch for today: Support- 1816 and 1810 Resistance- 1830 and 1835.

Quote of the day - “Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.” - Warren Buffett.
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