XAU/USD Current price: $1,760.52
- A better market mood limits demand for safe-haven gold.
- Upbeat US data provided support to high-yielding equities.
- XAU/USD could advance in the near term, although sustained gains seem unlikely.
Gold has trimmed all of its Monday’s gains and trades just below the 1,760 price zone, although off its daily lows. Demand for the bright metal receded amid a better performance of equities, reflecting a better market’s mood. The American dollar also remained away from investors’ radar, shedding ground against other major currencies.
Better than anticipated US data lifted further the market’s sentiment, as the September ISM Services PMI improved from 61.7 to 61.9, much better than the 60 expected. Services businesses activity in the country improved for the 16th month in a row, although the official report also showed rising concerns about bottlenecks and constraints on logistics, alongside “challenges with labour resources.”
Meanwhile, US government bond yields surged to a fresh weekly high, another sign of a better market mood. The yield on the 10-year Treasury note peaked t 1.54% and currently stands at 1.52%.
Gold price short-term technical outlook
XAU/USD keeps trading between Fibonacci levels. The daily chart shows that gold was unable to retain gains above a bearish 20 SMA and currently trades below it, meeting buyers for a third consecutive day around the 23.6% retracement of its latest daily slump at 1,748.05. Technical indicators are directionless within negative levels, with the RSI slowly turning south.
For the near term, the outlook is neutral-to-bullish as XAU/USD is standing above a bullish 20 SMA, while technical indicators aim higher from around their midlines. The 100 SMA maintains a modest bearish slope near the next Fibonacci resistance level at 1,764.35, the level to beat to expect additional gains in the upcoming sessions.
Support levels: 1,748.05 1,735.26 1,721.60
Resistance levels: 1,764.35 1,777.75 1,787.30
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 clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
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.