Gold Price Forecast: XAU/USD holds on to higher ground around $3,350

XAU/USD Current price: $3,353.43

• The market mood improved despite mixed data, persistent global trade tensions.
• The European Central Bank will announce its decision on monetary policy on Thursday.
• XAU/USD paused its rally and retreated, bulls still have a chance.

Gold price hovers around $3,350 a troy ounce, down on Tuesday as the US Dollar (USD) managed to recover some of the ground shed on Monday. Speculative interest flipped into riskier assets, with US indexes up by the time of writing, reverting from a pre-opening dip.

United States (US) data was mixed, as Factory Orders fell by 3.7% MoM in April, much worse than the 3.4% advance posted in March or the -3% anticipated by market analysts. At the same time, the number of job openings on the last business day of April stood at 7.39 million, according to the Job Openings and Labor Turnover Survey (JOLTS) report. The figure surpassed the 7.2 million openings recorded in March and exceeded the market expectation of 7.1 million.

Also, the Eurozone (EU) reported that Harmonized Index of Consumer Prices (HICP) rose by 1.9% year-on-year (YoY) in May, below the European Central Bank’s (ECB) 2% target. The core annual figure printed at 2.3%, easing from the 2.7% posted in April and below the 2.5% anticipated by market players. The figures lifted the mood ahead of the European Central Bank (ECB) monetary policy decision on Thursday.

Meanwhile, global trade tensions remain the same. The latest from US President Donald Trump was doubling tariffs on aluminium and steel imports into the country to 50%, starting Wednesday. An update on the matter can come later today.

XAU/USD short-term technical outlook

From a technical point of view, XAU/USD seems to be consolidating gains and with the risk still poised to the upside. In the daily chart, the bright metal holds above all its moving averages, with a flat 20 Simple Moving Average (SMA) offering support around $3,292.80, while the 100 and 200 SMAs keep grinding north far below the shorter one. Technical indicators, in the meantime, remain within positive levels, although with uneven directional strength.

In the near term, and according to the 4-hour chart, XAU/USD maintains its positive bias. The pair bounced from a mildly bullish 20 SMA, which advances beyond directionless 100 and 200 SMAs. Finally, technical indicators eased from their recent peaks, but consolidate within positive levels, far from suggesting a steeper decline.

Support levels: 3,333.10 3,316.65 3,292.80

Resistance levels: 3,367.75 3,374.90 3,394.05