XAUUSD Current price: $1,824.01

  • Global central bankers jump on the quantitative tightening train.
  • Wall Street extends its bearish route and reaches fresh monthly lows.
  • XAUUSD nears a multi-week low of $1,822.10 with a firmly bearish near-term stance.

Gold Price trades near a fresh weekly low of $1,822.10 a troy ounce amid panic boosting demand for the American currency. There was no specific catalyst for the latest market’s reaction but a cluster of well-known factors denting the sentiment for long. Meanwhile, tensions between Russia and the western world continue to escalate, with the country menacing with retaliation should Finland join NATO. Finland’s president  and Prime Minister earlier said that the country should apply to join NATO “without delay.”

On the other hand, central banks embarked on quantitative tightening. European Central Bank officials keep paving the way towards a July rate hike, with different officials favoring such a movement. Also, Bank of Canada Deputy Governor Toni Gravelle suggested that the central bank would need to raise rates above neutral. It is worth noting that the US Federal Reserve is two steps ahead of other central banks, having hiked rates by 50 bps in May and pledging for at least 2 or 3 more 50 bps hikes while drawing plans to reduce its balance sheet.

Stocks are down alongside government bond yields amid renewed demand for safety. Wall Street can’t find its footing, with the three major indexes in the red and flirting with fresh monthly lows. Meanwhile, the US 10-year Treasury note yields 2.85%, far below the peak of above 3.20% posted in May.

Gold Price short-term technical outlook

The daily chart for XAUSUD shows that the price is pressuring a flat 200 SMA for a third consecutive day while developing below the 20 and 100 SMAs. The shorter one continues heading firmly lower above the longer ones, reflecting strong selling interest. Technical indicators, in the meantime, hover near oversold readings lacking clear directional strength.

The bright metal is firmly bearish according to technical readings in the 4-hour chart. Gold has met sellers for a second consecutive day around a bearish 20 SMA, now providing dynamic resistance at around $1,845. Technical indicators have accelerated their declines after the metal broke below the previous weekly low and trades at levels last seen in February. 

Support levels: 1,822.10 1,813.70 1,800.00

Resistance levels: 1,835.60 1,850.00 1,862.10  

View Live Chart for the XAU/USD

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.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD has lost its traction in the American session and retreated to the 1.0550 area. In the absence of high-tier macroeconomic data releases, the dollar is staging a rebound with the US Dollar Index rising above 103.00 and forcing the pair to edge lower.

EUR/USD News

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD has extended its sideways grind below 1.2500 into the second half of the day on Friday with the dollar staying resilient against its rivals. Nevertheless, the pair remains on track to snap a four-week losing streak.

GBP/USD News

Gold loses traction, drops below $1,840

Gold loses traction, drops below $1,840

Gold came under modest bearish pressure in the American session on Friday and dropped below $1,840. The benchmark 10-year US Treasury bond yield stays quiet above 2.8%, helping XAU/USD limit its losses ahead of the weekend.

Gold News

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

A brief technical and on-chain analysis on Bitcoin price. Here, analysts evaluate where BTC could be heading next. Does the possibility for a cat bounce make sense?

Read more

PANW shows bullish reversal chart pattern after earnings beat

PANW shows bullish reversal chart pattern after earnings beat

PANW stock benefits from continued strong revenue growth. Palo Alto Networks now nearly services half of the Global 2000. PANW stock is showing a bullish reversal pattern on its daily chart.

Read more

Majors

Cryptocurrencies

Signatures