XAU/USD Current price: 2,015.77
- Federal Reserve’s speakers repeat the well-known message of wait and see.
- The United States will publish the January Consumer Price Index on Tuesday.
- XAU/USD nears the $2,000 mark with a solid bearish stance in the near term.
Gold eased throughout the first half of the day, finding some buyers ahead of Wall Street’s opening but resuming its slump afterwards. XAU/USD trades near a fresh February low of $2,011.97 despite subdued US Dollar demand.
In the absence of relevant macroeconomic data and ahead of first-tier figures scheduled for later in the week, the focus was on Federal Reserve (Fed) officials’ words. Board members have been downplaying the odds for a soon-to-come rate hike following the latest monetary policy meeting, generally pointing out that inflation still needs to come closer to their 2% goal and that they need more data before trimming rates.
Fed Board of Governors member Michelle Bowman was on the wires on Monday and repeated the current rate is in the rate place, adding it’s too soon “to predict” when rates will come down. Finally, she said that she doesn’t expect cuts to be appropriate in the immediate future. Thomas Barkin and Neel Kashkari will speak at different events throughout the American afternoon, but no surprises are expected from that side.
Meanwhile, the positive tone of equities weighs on the precious metal. US indexes trade in the green, with the S&P 500 extending gains beyond the 5,000 mark and reaching fresh record highs.
Market players are now waiting for a United States (US) inflation update. The country will release the January Consumer Price Index (CPI) on Tuesday, which is seen at 0.2% MoM and 3% YoY. The annual core reading is foreseen at 3.8%, slightly below the 3.9% posted in December. Softer-than-anticipated readings could revive hopes for soon-to-come rate cuts in the US.
XAU/USD short-term technical outlook
The daily chart for XAU/USD suggests it has more room to go. The pair met intraday sellers around a bearish 20 Simple Moving Average (SMA), currently at around $2,028. The longer moving averages remain far below the current level but have turned directionless. Finally, technical indicators gain downward traction, crossing their midlines into negative territory and reflecting increased selling interest.
In the near term, and according to the 4-hour chart, the bearish case is clearer. The XAU/USD pair develops below all its moving averages, and the 20 SMA gains is currently accelerating below a flat 100 SMA, both around $2,030. At the same time, technical indicators head firmly lower, approaching oversold readings but far from suggesting a potential downward exhaustion.
Support levels: 2,009.10 1,988.90 1,976.50
Resistance levels: 2,028.00 2,044.70 2,065.50
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 flat lines around 0.6500 ahead of Australian employment details
AUD/USD oscillates around the 0.6500 mark during the Asian session on Thursday, awaiting Australian jobs data before a firm intraday direction. Trade uncertainties, rising geopolitical tensions, and the Fed's hawkish pause weigh on investors' sentiment. This, in turn, acts as a headwind for the risk-sensitive Aussie.
NZD/USD trades with mild gains above 0.6000, New Zealand economy grows faster than expected in Q1
The NZD/USD pair trades with mild gains near 0.6030 during the early Asian session on Thursday. The New Zealand Dollar strengthens against the Greenback due to the stronger-than-expected New Zealand’s Gross Domestic Product report.
Gold price bounces off weekly low; bulls seem reluctant amid hawkish Fed
Gold price attracts some dip-buyers during the Asian session and reverses part of the previous day's slide to the weekly low amid a revival of safe-haven demand, bolstered by trade uncertainties and rising geopolitical tensions. Moreover, a subdued USD price action acts as a tailwind for the bullion.
Australia unemployment rate expected to signal a broadly stable labor market
The Australian Bureau of Statistics will release the May monthly employment report at 01:30 GMT on Thursday. The country is expected to have added 25K new job positions, while the Unemployment Rate is projected to hold steady at 4.1%.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
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.