XAUUSD Current price: $1,711.01
- The European Central Bank failed to impress, helping the greenback.
- US Treasury yields eased from their early peaks but still hint at recession.
- XAUUSD has managed to recover from a fresh 2022 low but lacks follow-through.
Gold price recovered from a fresh 2022 low of $1,680.82 a troy ounce and now trades in the $1,711 price zone. The dollar shined after the European Central Bank announced its monetary policy decision, which initially hit the greenback as policymakers hiked rates by 50 bps. However, the absence of clues about what’s coming up next discouraged bulls.
Meanwhile, market participants pay close attention to government bond yields, as recession fears remain the main theme. Treasury yields advanced throughout the first half of the day but receded after Wall Street’s opening, halting the dollar’s appreciation. XAUUSD retained gains above the $1,700 threshold.
Generally speaking, the market’s mood remains sour, with US indexes battling to retain the green amid encouraging earnings reports. Still, softer-than-anticipated US data will likely prevent them from rallying.
Gold price short-term technical outlook
From a technical point of view, the daily chart for XAUUSD hints at a bullish correction, although the risk remains skewed to the downside. Technical indicators are barely correcting extreme oversold conditions as the bright metal develops far below bearish moving averages.
In the near term, and according to the 4-hour chart, potential gains seem limited. Technical indicators have turned flat after reaching neutral readings, while the pair struggles around a mildly bearish 20 SMA. The 100 and 200 SMAs maintain their firmly bearish slopes far above the current level. Renewed selling pressure below $1,697.50 will likely result in a test of the aforementioned daily low.
Support levels: 1,697.50 1,689.90 1,680.80
Resistance levels: 1,718.25 1,727.20 1,736.70
View Live Chart for the XAUUSD
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

Bitcoin sits at new record highs above $122,000
Bitcoin breaks above the key milestone level on Monday, setting a new all-time high above $122,000, with no signs of slowing. The technical outlook supports further gains as momentum indicators remain robust and price action firmly in price discovery mode, with the next potential target above $130,000.

EUR/USD keeps the red below 1.1700 amid US-EU trade tensions
EUR/USD remains in the red below 1.1700 in the European session on Monday. The Euro underperforms against the US Dollar, in the wake of rising risks of a US-EU trade war, especially after US President Trump threatened 30% tariffs on the EU from August 1. EU says its ready with retaliatory tariffs.

Gold price flirts with multi-week top as safe-haven buying offsets modest USD strength
Gold price trades with a positive bias for the fourth straight day and hovers near a three-week high during the European session on Monday. Traders might refrain from placing aggressive directional bets and opt to wait for US inflation figures. Meanwhile, trade war fears continue underpinning the bright metal.

GBP/USD holds losses below 1.3500; vulnerable near multi-week low
GBP/USD enters a bearish consolidation phase in European trading on Monday, holding losses below the 1.3500 mark. Looming trade concerns dent risk sentiment and boost the haven dmeand for the US Dollar at the expense of the higher-yieding Pound Sterling.

Five fundamentals for the week: Investors eye tariff circus and US inflation data Premium
Which country will be the next to receive a letter from America? US President Donald Trump has been extending his tariff threats through the weekend. Has the US economy felt the consequences of levies already imposed? These are the topics for another hot summer month.

Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.