Gold Price Forecast: Technicals hint at more slides ahead

Valeria Bednarik FXStreet

XAUUSD Current price: $1,843.81

Investors are cautious ahead of FOMC Meeting Minutes and hints on monetary policy.
US government bond yields bounced back after reaching fresh weekly lows.
XAUUSD is technically poised to extend its decline, $1,838.00 provides support.

Gold price is down on Wednesday as the greenback met renewed demand. XAUUSD bottomed during the American session at $1,841.84 a troy ounce, holing nearby ahead of the FOMC Meeting Minutes. Generally speaking, investors remain cautious amid signs of slowing economic growth and doubts the US Federal Reserve will be able to tame inflation.

As of lately, policymakers have been somehow cooling down expectations of an aggressive monetary policy, now suggesting a couple more of 50 bps rate hikes before a pause to analyze the effects on the economy. The Fed’s document will likely provide some clues as to what members are planning for the upcoming months.

Meanwhile, stocks hover around their opening levels. European indexes managed to post modest gains, while US ones are mixed. US government bond yields have recovered from Tuesday’s slide, although the 10-year Treasury note currently yields 2.75%.

Gold Price short-term technical outlook

According to the daily chart, XAUUSD is poised to extend its decline. XAUUSD has retreated below a mildly bearish 20 SMA while it approaches a directionless 200 SMA, offering dynamic support around 1,838.00. Technical indicators, in the meantime, retreat from their midlines, gaining bearish traction within negative levels.

The bearish case is clearer in the 4-hour chart, as gold is now trading below all of its moving averages. At the same time, technical indicators have entered negative territory, maintaining their bearish slopes. The bearish pressure could ease if the metal recovers above $1,849.20, a former relevant support level.

Support levels: 1,838.00 1,826.30 1,814.90

Resistance levels: 1,849.20 1,854.50 1,869.70

View Live Chart for the XAU/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.