XAU/USD Current price: $2,260.96

  • Upbeat United States macroeconomic data failed to support the US Dollar.
  • Federal Reserve officials kept pouring cold water on rate-cut hopes.
  • XAU/USD keeps posting record highs without signs of bullish exhaustion.

Spot Gold resumed its advance on Tuesday, resulting in XAU/USD reaching a fresh all-time high of $2,276.90 in the American session. The US Dollar pared gains at the beginning of the day and lost some additional ground after Wall Street’s opening, despite generally upbeat United States (US) data and the poor performance of US indexes.

The country reported that February Factory Orders were up 1.4%, beating the 1% expected and improving from -3.8% in January. Also, according to the US Bureau of Labor Statistics (BLS), the number of job openings on the last business day of February stood at 8.75 million. The figure surpassed the previous 8.74 million, downwardly revised from 8.86 million. The headline figure shows the labor market is still far from cooling as the Federal Reserve (Fed) would like.

Finally, several Fed officials hit the wires, although only  Cleveland Federal President Loretta Mester referred to monetary policy. Mester was cautious, as despite saying she still expects the Fed can cut rates later this year, she warned that moving rates down too soon or too quickly would risk the progress made on inflation.

Wall Street is under strong selling pressure as government bond yields soar. The yield on the 10-year Treasury note peaked at 4.40% today, its highest since last December, while the 2-year note offers 4.70%, not far below the year peak.

XAU/USD short-term technical outlook

XAU/USD bullish trend remains firm in place, according to the daily chart, as the pair has consistently advanced beyond bullish moving averages. The 20 Simple Moving Average (SMA) maintains its bullish slope above bullish, longer ones, which also offer upward slopes. At the same time, the Momentum indicator remains significantly positive, reflecting sustained buying interest. Finally, the Relative Strength Index (RSI) indicator stands in overbought territory, further reflecting the upward strength.

The XAU/USD pair 4-hour chart offers a similar picture, as the bright metal extends gains well beyond bullish moving averages, reflecting the prevalent uptrend. Furthermore, the widening distance between the price and the moving averages suggest that the bullish momentum is gaining strength. Technical indicators reinforce the bullish narrative, holding within overbought readings. Despite losing upward strength, the case for a downward extension seems limited as the price holds around $2,260.

 Support levels: 2,250.70  2,234.50 2,217.90

Resistance levels:  2,277.10 2,290.00  2,310.00

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

EUR/USD holds above 1.0650 ahead of US Retail Sales data

EUR/USD holds above 1.0650 ahead of US Retail Sales data

EUR/USD trades modestly higher on the day above 1.0650 in European trading on Monday. A broadly subdued US Dollar and improving risk appetite bode well for the pair, as markets assess geopolitical developments and await US data. 

EUR/USD News

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY sits at multi-decade high near 154.00 as Japan's intervention risks loom

USD/JPY is sitting at multi-decade highs shy of 154.00 in the European session on Monday. The Japanese Yen continues to be undermined by the BoJ’s uncertain outlook about future rate hikes. Intervention fears and persistent geopolitical tensions could help limit losses for the safe-haven JPY. 

USD/JPY News

Gold struggles to hold above $2,350

Gold struggles to hold above $2,350

Following a bullish opening to the week, Gold went into a consolidation phase and retreated below $2,350 on Monday. Rising US Treasury bond yields and expectations of Israel avoiding a further escalation of the conflict with Iran weighs on XAU/USD.

Gold News

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

XRP price recovers from nearly eleven month low of $0.41 as developers propose native lending on XRPLedger

Ripple price recovered from weekend low of $0.4188, surged past $0.50 on Monday. XRPLedger developers have proposed a Native Lending Protocol to help Ripple establish a foothold in DeFi, lending and borrowing for users. 

Read more

Week ahead: Data from the US, UK and Canada in focus

Week ahead: Data from the US, UK and Canada in focus

Similar to Fed and ECB pricing, swaps traders have scaled back bets of rate cuts for the Bank of England (BoE’s) Bank Rate to below 50bps for the year.

Read more

Majors

Cryptocurrencies

Signatures