XAU/USD Current price: $1,753.48
- Upbeat US data lifted the market’s mood and weighed on the dollar.
- US Treasury yields continue climbing to multi-month highs.
- XAU/USD is marginally higher on a daily basis but bears retain control.
Spot gold is little changed from its Friday’s close, trading around $1,753.00 a troy ounce. Although steady, the market’s mood is positive, with global indexes trading mixed, but mostly up. A critical sign of the market’s times is US Treasury yields, which surge to fresh multi-month highs after the US Federal Reserve announced its preparing to trim pandemic-related facilities last week. The yield on the 10-year US Treasury note hit 1.51%, a level that was last seen in July amid mounting inflationary pressures and the Fed acknowledging it.
The American dollar advanced throughout the first half of the day but lost intraday momentum following the release of upbeat US data, which boosted sentiment instead of the local currency. US Durable Goods Orders were up 1.8% MoM in August, much better than the 0.7% expected. XAU/USD recovered from an intraday low of $1,744.84 as demand for the dollar receded.
Gold price short-term technical outlook
The daily chart for XAU/USD shows that it keeps trading below the 61.8% retracement of its March/June rally, a critical resistance level at 1,769.10. The bullish potential is limited, as the price is far below a bearish 20 SMA, which accelerated its decline below the longer ones. Technical indicators have recovered within negative levels, but the RSI remains flat at around 40, indicating absent buying interest.
Gold is bearish in the near term. The 4-hour chart for XAU/USD shows that a bearish 20 SMA provides intraday resistance, attracting selling interest. At the same time, the 100 SMA has crossed below the 200 SMA, both well above the current level. In the meantime, technical indicators have resumed their declines within negative levels, although with limited directional strength.
Support levels: 1,742.00 1,734.30 1,725.10
Resistance levels: 1.760.85 1,769.10 1,785.40
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 holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.