XAU/USD Current price: $1,891.76
- The US Dollar resumed its advance as Wall Street turned red.
- Market players await central banks’ speakers at the Jackson Hole Symposium.
- XAU/USD keeps posting lower lows below $1,900, bears not done yet.
Spot Gold bottomed at $1,884.77 on Monday, its lowest since mid-March. XAU/USD recovered throughout the first half of the day on easing US Dollar demand but lost its positive momentum and trades flat for the day around the $1,890 mark.
The USD recovered on the back of a souring market mood, as US indexes dipped after the opening while government bond yields soared. The yield on the 10-year Treasury note jumped to 4.35%, its highest since 2007, while the 2-year note offered as much as 5%, hovering just below the level at the time of writing.
Financial markets are concerned about a potential economic setback, as global central banks seem reluctant to put an end to the monetary tightening cycle. Indeed, the pace of hikes has slowed after the aggressive stance from 2022, but the year goes by, and policymakers still talk about more action needed to tame inflation. Chinese woes add to speculative interest fears as authorities failed to take decisive action against a weakening currency.
Meanwhile, the macroeconomic calendar has little to offer this week, with the focus on the Jackson Hole Symposium. Federal Reserve (Fed) Chair Jerome Powell and European Central Bank (ECB) President Christine Lagarde will speak on Friday, with market players hoping for clues on future decisions.
XAU/USD price short-term technical outlook
The XAU/USD pair daily chart shows that the bearish bias remains in place. Gold develops inside a daily descendant channel coming from the high posted at $1,982.15 on July 27, far below the upper end of the figure. Furthermore, XAU/USD is below all its moving averages, with the 20 Simple Moving Average (SMA) maintaining its downward slope above a mildly bullish 200 SMA. Finally, technical indicators bounced modestly from near oversold readings, holding within negative levels and falling short of supporting a more sustainable advance.
The 4-hour chart shows the upside remains limited for XAU/USD. A bearish 20 SMA keeps rejecting bulls, with spikes above it being quickly reverted. At the same time, the 100 SMA accelerated south above the shorter one while below the 200 SMA. Technical indicators, in the meantime, lost their upward strength and turned flat below their midlines, reflecting the absence of buying interest.
Support levels: 1,884.20 1,871.50 1,859.90
Resistance levels: 1,898.90 1,915.30 1,922.40
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