Gold price is Down

Tuesday's gold price is down due to the revived demand for US dollars.

A negative US jobs report for April gave rise to rumors that the Fed may lower interest rates in the upcoming months.

Investors will be watching Tuesday's speech by Fed Governor Kashkari.

Tuesday's gold price (XAU/USD) declines. The rebound in demand for US dollars (USD) is what is driving the yellow metal's decline. Nonetheless, wagers that the Federal Reserve (Fed) will lower interest rates later this year have increased in response to recent US Nonfarm Payrolls (NFP) statistics. Anticipating an easing cycle could lead to a rise in the price of gold since it becomes a more affordable choice for buyers from overseas. Furthermore, the precious metal will continue to be supported in the foreseeable future by robust central bank purchases and demand from Asian markets.

However, indications of continued political unrest in the Middle East could increase the number of people seeking refuge there and raise the price of gold. Neel Kashkari, the president of the Fed Bank of Minneapolis, is expected to speak later on Tuesday. The Fed officials' hawkish stance may help the USD and hurt gold denominated in USD.

Daily Digest Market Movers: Despite uncertainty and an inflationary environment, the price of gold stays stable.

The strength of the employment market will provide officials time to build confidence that inflation will decline, according to Richmond Fed President Thomas Barkin, who stated that the present interest rate level should chill the economy enough to bring inflation down to the 2% objective.

John Williams, the president of the New York Fed, promised rate reductions in the future. Williams went on to say that the Fed is examining the "totality" of data and that he is witnessing a slowdown in job creation.

According to LSEG's rate likelihood software, markets have priced in 46 basis points (bps) of rate reduction from the Fed by the end of 2024, with the first cut anticipated in September or November.

On Monday, Hamas declared that it had accepted a cease-fire arrangement between Qatar and Egypt. Israel, however, rejected the agreement because it did not satisfy its "fundamental demands" and went on to attack the southern Gazan town of Rafah. According to Reuters, Israel has stated that it will carry on with negotiations.

Despite the rising inflationary environment and the uncertainty around the timing of the US Fed's rate drop, gold has increased by almost 12% this year.

According to US employment figures, the country's rate of job creation slowed down in April more than anticipated, and annual wage growth fell below 4.0% for the first time in almost three years.

Technical Evaluation: The price of gold is trading down for the day and is ready to continue consolidating in the foreseeable future. Since the important 100-day Exponential Moving Average (EMA) is above the yellow metal on a daily basis, the positive picture is intact.

Short-term, since mid-April, the price of gold has been trapped inside a declining trend channel. However, the 14-day Relative Strength Index (RSI) remains in the bullish zone, hovering around 58.0, suggesting that the upside is the path of least resistance.

The first upside objective for the precious metal will be the intersection of the upper bound of a declining trend channel and a high of April 26 in the $2,350–$2,355 range. The next obstacle to the north will appear around the psychological $2,400 mark, followed by the all-time high around $2,432.

Conversely, the round number of $2,300 serves as the first level of support for XAU/USD. The pivotal point of dispute is observed at $2,275, signifying the low of May 3 and the bottom of a channel with a declining tendency. The second negative filter to keep an eye on is the $2,200 round mark and the low of April 1 at $2,228.?