Gold’s Sudden Correction: What You Need To Know

Gold experienced a period of consolidation from June 28 to July 2, trading choppily between $2,329 and $2,339. This phase was influenced by the Federal Reserve’s hawkish stance and softer-than-expected inflation reports (Please view the bellow gold chart).

Key Developments

  1. Federal Reserve’s Hawkish Policy: The Fed’s aggressive approach to controlling inflation, typically through higher interest rates, reduces the attractiveness of non-yielding assets like gold.
  2. Softer Inflation Reports: Lower-than-expected inflation can force the Fed to follow an easy policy.

On July 3, 2024, gold prices broke out of the $2,339-$2,341 resistant zone and surged to the $2,363-$2,365 level. This significant move was triggered by:

  • SPDR Gold ETF Purchase: The SPDR Gold ETF acquired 5.76 tons of gold on July 2, 2024. This purchase was driven by expectations of a more easy Federal Reserve policy, which could lower interest rates and make gold more appealing to investors. Please check this SPDR Daily Gold Tracking Tool

Following this, gold prices moved from $2,352 to $2,392 after the release of better-than-expected U.S. Non-Farm Payroll (NFP) data on July 5, 2025. This data indicated a stronger economy, which can have mixed effects on gold:

  • U.S. NFP Data: Positive employment data on July 5,2024 supports the easy Fed’s policy.

During this period, the SPDR Gold ETF halted its gold purchases from July 4 to July 8. This pause likely contributed to the gold sudden correction from 2393 to 2351 to wait for Mr. Powell’s testifies before U.S Congress on July 9, 2024

Today’s testimony from Fed Chair Jerome Powell at 14:00 GMT is expected to shed light on future Fed policies.

A dovish stance may support gold to resume its up trend to test the 2390-2393, while a dovish outlook could lead to a test of the 2339-2341 or 2328-2329.

July 9, 2024: the following price zones are the key to gold trading for Mr. Powell’s testifies before U.S Congress

Key resistant zones: 2368-2371, 2390-2393

Key support zones: 2351-2352, 2339-2341, 2328-2329

Bellow is $1,000 profit Gold Buy Signal 2306 on June 26, 2024.

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