Gold Price Analysis: Despite Powell's bombshell gold is still higher on the day

Gold is trading 0.55% higher on Wednesday despite some greenback strength in the US session.
Price still unable to break above the pattern seen on the 4-hour chart.

Rajan Dhall, MSTA FX Daily

Fundamental backdrop

Today has been another bumper session with lots of news. The comments from Fed Chair Powell were the main event. As expected, Powell confirmed that the Fed is not "looking at" negative rates at the moment. He went on to say that the evidence on negative rates is very mixed and concern over them is interrupting intermediation. The futures markets have reduced their bets on negative rates but there is still the suggestion that they will need to reassess the situation if there is a second wave of the virus.

That was not the end of the central banks' speaks today as ECB's de Guindos said the Eurozone has already reached its lowest level in terms of economic activity. Slightly presumptuous as once again I am not sure he could forecast the second wave of infection and if the virus could mutate to something more serious. He added that it will take up to two years to the EU to fully recover and get back to the situation previous to the current shock.

In Washington, Trump was on the offensive once again extending the executive order aimed at Huawei and ZTE (Chinese companies). Elsewhere, Washington also extended its stay at home order through to June 8th.

Equities have not reacted well to events in the session, with all of the major indices down over 2%. The DAX is also down over 2.5% on the session.

Technical picture

The trendline on the 4-hour chart below is a thing of beauty. The technical levels are often well respected in the yellow metal. The market is stuck between a rock and a hard place on Wednesday. The USD strength has outweighed the bearishness in stocks and gold is in full consolidation mode for now. It will be interesting when the USD starts to weaken. If gold breaks the pattern at that stage, it will tell us lots about the positioning.

Additional levels

XAU/USD

Overview
Today last price	1710.54
Today Daily Change	8.06
Today Daily Change %	0.47
Today daily open	1702.48

Trends
Daily SMA20	1705.31
Daily SMA50	1649.13
Daily SMA100	1608.59
Daily SMA200	1550.42

Levels
Previous Daily High	1711.09
Previous Daily Low	1693.76
Previous Weekly High	1723.7
Previous Weekly Low	1682.3
Previous Monthly High	1747.82
Previous Monthly Low	1568.46
Daily Fibonacci 38.2%	1704.47
Daily Fibonacci 61.8%	1700.38
Daily Pivot Point S1	1693.8
Daily Pivot Point S2	1685.11
Daily Pivot Point S3	1676.47
Daily Pivot Point R1	1711.13
Daily Pivot Point R2	1719.77
Daily Pivot Point R3	1728.46

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

EUR/USD stays defensive below 1.1600 as USD rebounds

EUR/USD trades marginally lower below 1.1600 in the European session on Friday. The pair edges down as the US Dollar rebounds slightly after Thursday’s massive profit-taking pullback. Looming US-Iran uncertainty revives the haven demand for the Greenback, while the Euro takes a breather after the hawkish ECB hike-led rally.

GBP/USD keeps losses around 1.3400 after UK GDP data

GBP/USD trades on the back foot around 1.3400 in the European trading hours on Friday. The UK Gross Domestic Product (GDP) declined by 0.1% in April, keeping the offered tone intact around the British Pound amid a broad US Dollar rebound.

Gold sticks to losses amid Iran peace deal doubts and hawkish Fed bets

Gold attracts some sellers near the $4,246-$4,247 region during the Asian session, stalling the previous day's solid recovery move from its lowest level since November 2025. Mixed signals regarding a potential US-Iran peace deal revive demand for the safe-haven US Dollar.

Pi Network: Bulls attempt comeback as bearish strength fades

Pi Network (PI) is trading at around $0.120 after a modest recovery the previous day. Despite this recent rebound, traders should be cautious as a scheduled unlock of 14.8 million PI tokens on Friday could limit the token's recovery potential by increasing market supply. Meanwhile, the technical outlook is showing early signs of fading bearish momentum, suggesting a short-term bounce.

U.S. economic outlook: The Warsh era starts with a great debate

Warsh is starting his tenure at the Fed during a transition of sorts. Given the prior FOMC statement and the countless Fed speakers we’ve heard from since then, it seems Fed officials are in the midst of shifting toward a more neutral policy stance.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.