XAU/USD Current price: $1,769.56
- US Treasury yields jumped to their highest in over three months, fueling demand for the dollar.
- A scarce macroeconomic calendar leaves financial assets in the hands of sentiment.
- Gold maintains its longer-term bullish stance but may ease further in the upcoming sessions.
Gold jumped to $1,785.11 a troy ounce during the European session as the dollar came under strong selling pressure. However, the American currency recovered following Wall Street’s opening, as yields are once again on the run. The yield on the 10-year US Treasury note jumped to 1.636%, its highest in over three months and holding on to gains. At the same time, equities are also up, with US indexes nearing record highs. The bright metal trimmed intraday gains and currently trades around 1,769. Meanwhile, the absence of relevant fundamental figures keeps financial assets depending on the sentiment for direction.
Gold price short-term technical outlook
XAU/USD has briefly surpassed the 23.6% retracement of its latest bullish run but is now trading below the 38.2% retracement of the same advance. Ever since the week started, the bright metal has met buyers around the next Fibonacci support level at 1,761.00. The daily chart shows that the risk is skewed to the upside, although buyers are still cautious.
Gold is trading above a flat 20 SMA, which converges with the mentioned Fibonacci support, while the longer moving averages head south well above the current level. Technical indicators remain within positive levels, with the Momentum advancing and the RSI directionless, suggesting that buyers outpace sellers.
However, the near-term picture favors a slide toward the lower end of its recent range. The 4-hour chart shows that the bright metal is currently trading below the 20 and 200 SMAs, while technical indicators stand within negative levels. The risk should skew to the downside on a break below 1,761.00 the immediate support level.
Support levels: 1,761.00 1,750.00 1,735.80
Resistance levels: 1,770.40 1,777.75 1,790.59
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
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.