XAUUSD Current price: $1,708.13
- Exacerbated recession fears put markets in risk-off mode.
- US Federal Reserve’s Waller cooled down expectations for a 100 bps hike.
- XAUUSD bounced from below $1,700 but maintains the downward bias.
Gold Price remains on the bearish path, with the bright metal trading at $1,708.00 a troy ounce. It touched an intraday low of $1,697.56, its lowest since August 2021. Risk aversion dominated financial markets for most of the day, pushing the greenback higher against most of its major rivals.
Fears of a recession are once again under the spotlight, as the US reported on Wednesday a new record jump in inflation, currently at 9.1% YoY, despite the Federal Reserve adopting aggressive monetary tightening in March. An economic setback seems inevitable in the US, and most major economies are still battling to recover from the early stages of the pandemic.
The dismal market mood faltered after Wall Street’s opening, helping US indexes to bounce a bit which helped XAUUSD recover from the mentioned 2022 low. The catalyst came from Federal Reserve Governor Christopher Waller, who argued that markets may have gotten ahead of themselves by pricing a 100 basis points rate hike in July. Nevertheless, stocks remain in the red, with the three major indexes down roughly 1% each.
Gold Price short-term technical outlook
The daily chart for XAUUSD shows that the metal posted a lower high and a lower low, in line with the dominant trend. Technical indicators resumed their slide within oversold levels, also supporting another leg south, as moving averages head lower far above the current level.
Chances of a firmer recovery seem limited in the near term. The 4-hour chart shows that technical indicators have barely lost downward strength near oversold readings. At the same time, moving averages maintain their bearish slopes, with the 20 SMA now providing dynamic resistance at around $1,727.20.
Support levels: 1,697.60 1,685.40 1,677.00
Resistance levels: 1,714.50 1,727.20 1,736.70
View Live Chart for the XAUUSD
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