XAU/USD pair

Gold

Gold prices in terms of US dollar (XAU/USD) breached the hourly 50-DMA located at 1092.50 and printed lows at 1091.59 on Tuesday, only to recover and end the day in green at 1095.92. The pair spiked to 1099.06 highs after US consumer confidence data surprised markets on the downside, playing down slightly on Fed rate-hike chatter. While the downside remained cushioned as markets expected concerns over China slowdown will cause Fed to push back it rate lift-off stance.

A for today’s trade in running, XAU/USD manages to hold above the 5-DMA located at 1095.32 and trades higher at 1096.70 levels. The pair extends recovery from the previous session as USD bulls have taken a back seat, unwinding USD longs after recent strength. Although further upside in XAU/USD remains completely dependent on the FOMC decision due later tonight, which is widely expected to be a non-event. Although fresh cues on the interest rates outlook will be closely watched for further USD moves.

Technically, on daily charts, the pair continues to cling to the 5-DMA with the daily RSI at 25 aiming higher, which indicates further room for recovery. While on hourly charts, the pair continues to trade around a flat line and trades above most hourly moving averages, finding good support at hourly 100-SMA located at 1094 levels. The hourly RSI at 56 has inched higher suggesting further upside likely.

The pair is expected to continue side-ways although supported ahead of the key FOMC decision. To the upside, the pair could rise to 1100 levels, beyond which doors open for a test of hourly 200-SMA located at 1103.10 and from there to the trend line resistance located at 1105. The pair is expected to remain supported so long as it holds above hourly 100-SMA. However, a hawkish Fed statement may spur USD rally, knocking-off XAU/USD lower towards five-year lows reached at 1176.77 on July 24.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD holds above 0.6500 in thin trading

AUD/USD holds above 0.6500 in thin trading

The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.

AUD/USD News

EUR/USD comfortable below 1.0800 lower lows at sight

EUR/USD comfortable below 1.0800 lower lows at sight

The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.

EUR/USD News

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.

Gold News

Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales

Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales

Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.

Read more

Bears have been standing before a steamroller so far this year

Bears have been standing before a steamroller so far this year

Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.

Read more

Majors

Cryptocurrencies

Signatures