Gold Price Forecast: XAU/USD retakes $1,950 as investors hesitate
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UNLOCK OFFERXAU/USD Current price: $1,958.28
- Doubts about the US debt ceiling removal undermine demand for high-yielding assets.
- US CB Consumer Confidence declined by less than anticipated in May.
- XAU/USD turned bullish in the near term, needs to extend advance beyond $1,965.20.
Gold price has posted a nice comeback after bottoming for the day at $1,932 a troy ounce, now trading near a daily high of $1,963.48. Financial markets are struggling to maintain the optimism following weekend news indicating that US authorities agreed on the debt ceiling to avoid a default. The news brought relief, although following a slow start to the week amid Monday’s holidays in Europe and the United States, the sentiment deteriorated.
The US House Rules Committee is set to discuss a bill today on removing the debt ceiling until 2025 and cutting spending. The bill would need to pass Congress. However, lawmakers from the two major parties are reluctant to pass the deal, reviving default-related fears.
Asian and European indexes trade mixed, with Wall Street following such a lead. The Dow Jones Industrial Average is down roughly 120 points, while the S&P 500 and the Nasdaq Composite struggle to remain afloat, reflecting ongoing concerns.
Meanwhile, US CB Consumer Confidence declined by less than anticipated in May, down to 102.3 from an upwardly revised 103.7 in April. According to the official report, “consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy.”
XAU/USD price short-term technical outlook
XAU/USD daily chart shows it bounced from a mildly bullish 100 Simple Moving Average (SMA) for a third consecutive day. The 20 SMA, however, maintain its bearish strength far above the current level. At the same time, technical indicators are recovering from near oversold readings, but their bullish strength is limited and remain well into negative territory, falling short of anticipating another leg north.
In the near term, however, the pair is poised to extend its gains. In the 4-hour chart, XAU/USD develops above a now flat 20 SMA, while the longer ones keep heading lower, far above the current level. At the same time, technical indicators turned higher within positive levels, following a brief consolidative stage. Further gains could be expected on a break above $1,965.20, a static resistance level.
Support levels: 1,944.40 1,935.30 1,912.00
Resistance levels: 1,965.20 1,972.00 1,985.25
XAU/USD Current price: $1,958.28
- Doubts about the US debt ceiling removal undermine demand for high-yielding assets.
- US CB Consumer Confidence declined by less than anticipated in May.
- XAU/USD turned bullish in the near term, needs to extend advance beyond $1,965.20.
Gold price has posted a nice comeback after bottoming for the day at $1,932 a troy ounce, now trading near a daily high of $1,963.48. Financial markets are struggling to maintain the optimism following weekend news indicating that US authorities agreed on the debt ceiling to avoid a default. The news brought relief, although following a slow start to the week amid Monday’s holidays in Europe and the United States, the sentiment deteriorated.
The US House Rules Committee is set to discuss a bill today on removing the debt ceiling until 2025 and cutting spending. The bill would need to pass Congress. However, lawmakers from the two major parties are reluctant to pass the deal, reviving default-related fears.
Asian and European indexes trade mixed, with Wall Street following such a lead. The Dow Jones Industrial Average is down roughly 120 points, while the S&P 500 and the Nasdaq Composite struggle to remain afloat, reflecting ongoing concerns.
Meanwhile, US CB Consumer Confidence declined by less than anticipated in May, down to 102.3 from an upwardly revised 103.7 in April. According to the official report, “consumers’ view of current conditions became somewhat less upbeat while their expectations remained gloomy.”
XAU/USD price short-term technical outlook
XAU/USD daily chart shows it bounced from a mildly bullish 100 Simple Moving Average (SMA) for a third consecutive day. The 20 SMA, however, maintain its bearish strength far above the current level. At the same time, technical indicators are recovering from near oversold readings, but their bullish strength is limited and remain well into negative territory, falling short of anticipating another leg north.
In the near term, however, the pair is poised to extend its gains. In the 4-hour chart, XAU/USD develops above a now flat 20 SMA, while the longer ones keep heading lower, far above the current level. At the same time, technical indicators turned higher within positive levels, following a brief consolidative stage. Further gains could be expected on a break above $1,965.20, a static resistance level.
Support levels: 1,944.40 1,935.30 1,912.00
Resistance levels: 1,965.20 1,972.00 1,985.25
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