XAU/USD Current price: $3,207.24
- The Bank of Canada and the European Central Bank will announce monetary policy decisions this week.
- Uncertainty about US tariffs on China dented the mood in the American session.
- XAU/USD corrected overbought conditions, may soon resume its advance.
Spot Gold trades above the $3,200 mark in the American session down on a daily basis amid a better market mood. Investors’ attention lies elsewhere, with g Asian and European stocks posting gains amid easing tariffs-related concerns. As it happened lately, demand for the US Dollar (USD) is limited amid concerns United States (US) President Donald Trump tariffs will put the world’s largest economy one step closer to recession.
Headlines, however, are still unclear. The White House announced over the weekend that some technology imports from China will be exempted from the reciprocal tariffs, yet still subject to the initial 20% levy. However, Trump stated on Monday that Chinese-made smartphones and other electronics will not be exempt from tariffs - adding they are moving into a different levy "bucket".
The latest on Trump weighed on Wall Street. After a strong start to the day, US indexes are in retreat mode, helping XAU/USD to remain afloat.
The shortened week due to Easter holidays will anyway include two central banks’ monetary policy announcements: The Bank of Canada (BoC) will unveil its decision on Wednesday, while the European Central Bank (ECB) will do the same on Thursday. In the meantime, the United Kingdom (UK) and Canada will release inflation updates. As for the US, the macroeconomic calendar seems pretty quiet, although multiple Federal Reserve (Fed) officials will be on the wires throughout the upcoming sessions.
XAU/USD short-term technical outlook
From a technical point of view, the daily chart for the XAU/USD pair shows it holds inside Friday’s range, having surpassed its record high for a few cents. Technical indicators, in the meantime, eased from extreme levels, with limited downward strength. Indicators are reflecting the ongoing near-term slide, rather than suggesting the bullish run is over. At the same time, the pair develops far above all its moving averages, which maintain solid bullish slopes, in line with the dominant bullish trend.
In the near term, and according to the 4-hour chart, XAU/USD downward correction seems to be complete. The Momentum indicator has ticked higher above its 100 line after correcting extreme readings, while the Relative Strength index (RSI) indicator seems to stabilize at around 63. At the same time, a bullish 20 SMA offers support at around $3,170.90, while heading firmly higher above also bullish 100 and 200 SMAs.
Support levels: 3,193.30 3,181.15 3,170.90
Resistance levels: 3,215.40 3,231.60 3,245.75
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