Gold prices in terms of the US dollar (XAU/USD) held on to mild gains and ended Tuesday at 1085.75 levels after a broader stabilization in commodities markets helped gold to rebound modestly. However, the pair failed to sustain above 10-DMA located at 1092.50 and retreated in the familiar range around 1085 levels, having once again tested 1080 – key levels. XAU/USD traded largely choppy with limited upside as the USD bulls jumped back into the bids following Fed’s Lockhart’s rate lift-off comments ahead of a data-crowded second half of the week.
Presently, XAU/USD prices remains at the dead center of the recent trading range ahead of crucial macro-economic data scheduled for the next couple of days. The pair is seen -0.11% lower near 1086 levels, moving in a narrow $ 5 range and below 1090 marker, as traders remain cautious ahead of series of crucial economic releases from the US including the key – ADP employment, ISM non-manufacturing PMI and trade data. ADP Employment is projected to rise by 210k, 27k below June’s 237k growth. We expect ISM non-manufacturing to tick down from 56.0 to 55.7 (consensus 56.3). While the baseline scenario going into the release of the June trade figures is that the nominal trade deficit is expected to have widened to $42.2 billion from the $41.9 billion seen in May.
Technicals – XAU/USD locked between 1080-1100 range
XAU/USD keeps moderate losses and hovers below the 10-DMA located at 1091.70, having failed an attempt to regain 5-DMA located at 1087.90. The pair faces immediate strong resistance at hourly 50-SMA and 100-SMA confluence zone located around 1088.50-1089.10. A break above which the pair could retest 10-DMA located 1091.70 levels and from there 1094.72 (Aug 4 High). Only a poor show of economic news from the US tonight could lift the XAU/USD pair above 1100 and beyond.
Conversely, a positive streak of US macro data will further boost the US currency, thereby dragging XAU/USD towards 1080 support, below which the pair is likely to retest five year lows at 1076.77 reached last month. However, its worth noting that a correction to the upside in XAU/USD cannot be ruled out in the near-term as a positive RSI-price divergence can be observed on the daily charts, signalling XAU bulls bidding up for a rebound from the five-year trough.
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
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.