XAU/USD Current price: $1,968.07
- United States CB Consumer Confidence unexpectedly improved in March to 103.4.
- The yield on the 2-year Treasury note recovered above the 4% threshold on a better market mood.
- XAU/USD advances on broad US Dollar weakness, bullish strength limited.
Spot gold trades near a daily high of $1,970.03 a troy ounce, as broad US Dollar weakness helped the metal recover some ground. XAU/USD trimmed half of its Monday’s losses, although a better market mood subdued demand for the bright metal.
Wide-spread concerns about banks’ stability eased further on Tuesday, pushing global stock markets into the green. Wall Street, however, struggles to preserve its positive momentum, with only the Dow Jones Industrial Average trading in the green at the time being. Meanwhile, US Treasury yields advance on Tuesday, reflecting easing demand for bonds. The 10-year note currently yields 3.56%, while the 2-year note yield recovered the 4% threshold and now offers 4.05%.
Further boosting the market sentiment, the United States CB Consumer Confidence unexpectedly improved in March to 104.2, while the February figure was upwardly revised from 102.9 to 103.4. The report shows that the Present Situation Index decreased to 151.1 from 153.0 in the previous month, while the Expectations Index ticked up to 73.0 from 70.4 in February. The latter has been below 80 for most of the past year, usually seen as a sign of an upcoming recession.
XAU/USD price short-term technical outlook
The daily chart for XAU/USD shows that it is trading above the 23.6% Fibonacci retracement of its March rally at $1,962.30, the immediate support level. Technical readings favor a bullish continuation, as the 20 Simple Moving Average (SMA) heads north almost vertically far below the current level while above also bullish longer ones. At the same time, the Momentum indicator extended its advance into overbought territory, while the Relative Strength Index (RSI) indicator pared its corrective decline and aims higher at around 61.
The 4-hour chart shows that, despite the ongoing advance, further gains are not yet clear. XAU/USD develops below a mildly bearish 20 SMA, although above bullish longer ones. The Momentum indicator, in the meantime, remains flat below its 100 level, while the RSI ticked higher but currently stands at 52, falling short of indicating increased buying interest. The bright metal could gain additional upward traction on a break above $1,978.94, the weekly high.
Support levels: 1,962.30 1,947.50 1,932.65
Resistance levels: 1,978.95 1,988.30 2,000.00
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
Editors’ Picks
GBP/USD bulls retain control near 1.3300 mark, highest since March 2022
The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.
EUR/USD grapples with higher ground as Fed cuts weigh on Greenback
EUR/USD found the high end on Thursday, holding fast to the 1.1150 level, though most of the pair’s bullish momentum comes from a broad-market selloff in the Greenback rather than any particular bullish fix in the Euro.
Gold consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.