XAU/USD Current price: $2,330.47

  • Gold lacks directional strength, but keeps trading near record highs.
  • Financial markets will trade on sentiment for much longer than believed.
  • XAU/USD extends its consolidative phase above the $2,300 mark.

Gold has shown little signs of life in the last few days, but it's worth remembering it stands at record levels. XAU/USD hit an all-time high of $2,449.92 in mid-May. The former record high was set two years ago at $2,070.45, way below its current comfort area above the $2,300 mark. With back and forths in between, XAU/USD has managed to add roughly 20% from the March 2022 peak. As a note of color, Gold was changing hands at around $1,550 when the Coronavirus pandemic hit the world early in 2020.

It's not just about Covid-19. Recession, inflation, and war are also on the list of top concerns. What's clear is that sentiment has taken over the lead of financial markets and will stay here for quite some time. Indeed, a corrective slide seems likely, but more likely, it seems speculative interest adding on dips. Uncertainty, now focused on when and how central banks will bring interest rates to "normal" levels, will last for much more than what everyday investors may believe.

Anyway, in the near term, the bright metal is lifeless amid a holiday in the United States (US). The country celebrates Juneteenth, and local markets are closed for the day. That said, there are no macroeconomic data or Federal Reserve (Fed) speakers to act as intraday catalysts for the US Dollar.

The next big event is the Bank of England (BoE) monetary policy decision on Thursday, although the announcement tends to have a limited impact on Gold prices. Policymakers have to deliver a huge surprise to actually move the bright metal bar.

XAU/USD short-term technical outlook

From a technical point of view, the daily chart shows a mildly bearish 20 Simple Moving Average (SMA) provides dynamic resistance, capping advances for a fourth consecutive day. At the same time, technical indicators stand flat just below their midlines, reflecting the absence of speculative interest. Finally, the 100 and 200 SMAs head firmly north, far below the current level, suggesting any upcoming side may be just corrective.

According to the 4-hour chart, XAU/USD is neutral in the near term. A mildly bullish 20 SMA provided intraday support at around $2,325, but sellers rejected advances around a marginally bearish 100 SMA. The 200 SMA, in the meantime, remains far above the current level, lacking directional strength. In the meantime, technical indicators rest just above their midlines, unable to provide directional clues.

Support levels: 2,325.00 2,314.25 2,298.10

Resistance levels: 2,334.00 2,351.90 2,366.30

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


Recommended Content

Editors’ Picks

AUD/USD: Further retracement targets the 200-day SMA

AUD/USD: Further retracement targets the 200-day SMA

The downward bias in AUD/USD remained unabated for yet another session on Tuesday, dragging spot to five-week lows and approaching the key 0.6600 neighbourhood.

AUD/USD News

EUR/USD remains vulnerable to extra pullbacks

EUR/USD remains vulnerable to extra pullbacks

EUR/USD retreated to multi-day lows and revisited the 1.0840 region on the back of the resumption of the buying interest in the greenback and ahead of key data releases due later in the week.

EUR/USD News

Gold reconquers $2,400, lacks directional momentum

Gold reconquers $2,400, lacks directional momentum

Gold stages a rebound and trades above $2,400 on Tuesday after closing the fourth consecutive trading day in negative territory on Monday. The pullback seen in US Treasury bond yields help XAU/USD cling to modest daily gains despite the US Dollar's resilience.

Gold News

Ripple stablecoin unlikely to invite legal trouble with SEC, XRP loses key support

Ripple stablecoin unlikely to invite legal trouble with SEC, XRP loses key support

Ripple (XRP), the native token of the XRP Ledger slipped under $0.60, a key psychological support for the altcoin. The two key market movers are the Securities & Exchange Commission’s (SEC) lawsuit against Ripple and the upcoming stablecoin RealUSD (RLUSD).

Read more

US S&P Global PMIs Preview: Economic expansion could struggle in July Premium

US S&P Global PMIs Preview: Economic expansion could struggle in July

On Wednesday, S&P Global will release advanced readings for the United States (US) Purchasing Managers Indexes (PMIs) for July, a monthly survey of business activity. The survey is anticipated to indicate that US economic activity in the private sector faced mixed trends during the current month.

Read more

Majors

Cryptocurrencies

Signatures