XAU/USD Current price: $1,919.83
- Mixed United States data fueled speculation the Federal Reserve could deliver one more hike.
- The US ISM Services PMI unexpectedly jumped to 54.5 in August, beating expectations.
- XAU/USD is technically bearish and poised to test August low at $1,884.77.
The US Dollar keeps marching higher on Wednesday, resulting in XAU/USD extending its slide for a fourth consecutive day. Gold currently trades near an intraday low of $1,915.27 a troy ounce, achieved after the release of mixed United States (US) macroeconomic data.
On the one hand, S&P Global downwardly revised the August Services PMI to 50.5 from 51 previously estimated. The Global PMI was then confirmed at 50.2 in the month against the 50.4 preliminary estimate. The reports indicated a slowdown in growth while noting input prices rose at a steeper pace in August, largely driven by higher wage bills. On the other, economic activity in the services sector expanded in August for the eighth consecutive month, according to the ISM Services PMI, which printed at 54.5, beating the 52.5 expected. Also, The IBD/TIPP Economic Optimism Index surged to 43.2 in September, its highest in five months.
Somehow, macro figures suggested the economy remains resilient but also that inflation-related risks have not cooled enough. As a result, the odds for a Federal Reserve (Fed) 25 basis points (bps) rate hike in November increased to 44.6%, according to the CME FedWatch Tool. Stock markets turned red, further fueling demand for the safe-haven USD.
XAU/USD price short-term technical outlook
XAU/USD has extended its slide below the 38.2% Fibonacci retracement of the $1,982.15/$1,884.77 decline at $1,921.80 after briefly trading above the 61.8% retracement last week. Such behavior usually anticipates a downward extension below the range’s low. At the same time, the daily chart shows that the pair is pressuring a dynamic support level as the 20 and 200 Simple Moving Averages (SMAs) converge around $1,915. Meanwhile, the 100 SMA keeps heading south well above the current level, while the Momentum indicator barely turned south just above its 100 line. Nevertheless, the Relative Strength Index (RSI) indicator gains bearish strength at around 45, in line with a continued slide.
For the near term, the bearish case is more evident. The pair briefly pierced a directionless 100 SMA, while the 20 and 200 SMA gain bearish strength far above the current level. Technical indicators, in the meantime, head south almost vertically, approaching oversold readings. The immediate Fibonacci support comes at $1,907.30, the level to clear to confirm a downward extension towards the base of the aforementioned range.
Support levels: 1,907.30 1,893.90 1,982.15
Resistance levels: 1,921.80 1,933.30 1,944.85
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: Further consolidation remains in place
AUD/USD set aside Wednesday’s small gains and resumed its downtrend, always against the backdrop of the multi-week consolidative range in place since mid-April. So far, the pair remains supported by the 0.6400 region, while the upside appears capped by the 0.6500 region.
EUR/USD: Bullish attempts lack colour
EUR/USD reversed three consecutive daily advances, returning to the 1.1250 zone following weekly peaks in the 1.1360-1.1370 band. The correction in spot came in response to the resurgence of the bid bias in the US Dollar, particularly underpinned by better-than-expected US business activity measures.
Gold battles to retain the $3,300 mark
Gold now seems to have embarked on a daly consolidative phase around the $3,300 mark per troy ounce amid the firm performance of the Greenback. However, a cautious market mood is helping to limit the downside for the precious metal.
Why Bitcoin is not equal to Gold
On March 6, 2025, U.S. President Donald Trump signed an executive order establishing a strategic Bitcoin reserve and digital asset stockpile for the United States government.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
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.