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 resumes upside toward 1.3300 ahead of BoE rate call
The GBP/USD gains traction and approaches 1.3300 in European trading on Thursday, having found buyers near 1.3150. A broad US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak
EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold hovers close to new high of $2,600 after Fed meeting
Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
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.