XAUUSD Current price: $1,672.02
- Central banks put inflation before growth, but policymakers' concerns are evident.
- US government bond yields soared to fresh multi-year highs, underpinning the dollar.
- XAUUSD trades within familiar levels, but the risk is skewed to the downside.
Spot gold trades around its daily opening, just above $1,670 a troy ounce. The bright metal consolidated within Wednesday’s $30 range as multiple central banks’ monetary policy decisions maintained traders busy since the day started. For the most, global policymakers are worried about bringing inflation down but seem more concerned about economic growth, regardless of refraining from commenting on potential recessions.
As investors finish digesting the latest batch of announcements, financial markets are clearly indicating risk aversion. Asian and European stock indexes closed in the red, while Wall Street navigates negative territory, with the three major indexes pressuring their weekly lows.
Meanwhile, Russia’s decision to escalate its attacks on Ukraine exacerbated the dismal mood. Moscow decided to mobilize troops on Wednesday, while President Vladimir Putin brought the possibility of a nuclear war to the table.
Higher government bond yields have prevented the dollar from falling after the US Federal Reserve delivered but failed to impress. The 10-year Treasury note currently yields 3.69%, while the 2-year note yield reached a multi-year peak of 4.16%, now hovering at around 4.13%.
Gold price short-term technical outlook
Technically, the daily chart shows that XAUUSD is at risk of falling. Technical indicators remain within negative levels, the Momentum slowly grinding lower and the RSI consolidating at around 36. The 20 SMA accelerated its slide below the longer ones, all of them above the current level and reflecting prevalent selling interest.
The near-term picture is neutral. Technical indicators in the 4-hour chart stand directionless around their midlines. The 20 SMA is flat below the current level, but the longer ones keep marching downwards, far above the current price. Selling interest is aligned around the $1,680 price zone, with limited chances of a bullish breakout. On the other hand, XAUUSD bottomed twice at around $1,654, and a clear break below it should lead to a steeper decline.
Support levels: 1,654.00 1,643.90 1,631.75
Resistance levels: 1,680.30 1,692.35 1,707.10
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 holds below 0.6400 amid signs of easing US-China tensions
The AUD/USD pair trades in negative territory near 0.6390 during the early Asian session on Monday. The US Dollar edges higher against the Aussie amid signs of easing US-China tensions. China will hold a press conference about policies and measures on stabilizing employment and ensuring stable growth on Monday, which will be closely watched by traders.
USD/JPY holds steady above mid-143.00s amid Trump's uncertainty
USD/JPY kicks off the week on a subdued note and consolidates above mid-143.00s amid mixed cues. Investors push back expectations for an immediate BoJ rate hike amid rising economic risks from US tariffs, which acts as a headwind for the JPY and lends support to the pair amid a modest USD uptick.
Gold edges lower to near $3,300 as US-China trade tensions ease
Gold price loses ground to near $3,310 in Monday’s early Asian session, down 0.30% on the day. De-escalating trade tensions between the US and China underpins the Gold price. The fears of the US recession might help limit the Gold’s losses.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
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.