XAU/USD Current price: $2,612.01
- Disappointing United States data further undermined the market’s mood.
- Financial markets move in slow motion ahead of the Christmas holidays.
- XAU/USD is poised to extend its slide below $2,600 amid renewed USD demand.
Spot Gold trades with a soft tone on Monday, although it's holding above $2,600 a troy ounce. The bright metal peaked early in Asia at $2,633.14 amid the broad US Dollar’s weakness, later easing on a souring mood backing demand for the American currency. Action, however, remains limited as investors gear up for the winter holidays. Most major markets will be closed in the upcoming days amid the Christmas celebration.
The poor performance of Wall Street is adding to the US Dollar's strength. Following some solid advances on Friday, the three major United States (US) indexes trade with a soft tone, with only the Nasdaq Composite posting a modest advance. An uptick in government bond yields further supports the Greenback. The 10-year Treasury note currently yields 4.56%, up roughly 4 basis points (bps).
Meanwhile, the US anticipated some macroeconomic releases scheduled for Tuesday as President Joe Biden issued an executive order closing the federal government on December 24. Durable Goods Orders fell 1.1% in November, worse than the 0.4% decline expected. Additionally, CB Consumer Confidence edged sharply lower in December, falling to 104.7 from 112.8 in November and missing the expected 112.9.
XAU/USD short-term technical outlook
From a technical point of view, XAU/USD could extend its slide in the upcoming sessions. The daily chart shows that it is pressuring its low and a bullish 100 Simple Moving Average (SMA), trading around the latter for the first time since last February. The 20 SMA, in the meantime, have lost its directional strength above the current level, suggesting selling pressure remains. Finally, technical indicators head south within negative levels, although without a strong momentum. The pair may extend its slump should the near-term slide extend below $2,600.
The 4-hour chart shows XAU/USD has fallen below the 100 and 200 SMAs while it is currently battling around a bearish 20 SMA. At the same time, technical indicators are piercing their midlines with firmly downward slopes, albeit still near neutral levels.
Support levels: 2,604.20 2,591.70 2,582.90
Resistance levels: 2,617.55 2,632.00 2,645.20
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: Extra gains look likely in the near term
AUD/USD added to Wednesday’s gains and broke above the key 0.6200 barrier following the pronounced retracement in the US Dollar amid widespread concerns over the impact of Trump’s tariffs on the global trade.
EUR/USD: There is a minor resistance at 1.1300
EUR/USD gathered renewed steam and advanced north of 1.1200 the figure to clinch new highs, always on the back of intense tariff woes and the marked sell-off in the Greenback.
Gold flirts with record peaks near $3,175, Dollar tumbles
Gold continued its record-setting rally on fresh tariff-related headlines, surging past the $3,170 mark per troy ounce after the White House confirmed new tariffs, sparking another round of US Dollar selling.
Bitcoin miners scurry to import mining equipment following Trump's China tariffs
Bitcoin (BTC) miners are reportedly scrambling to import mining equipment into the United States (US) following rising tariff tensions in the US-China trade war, according to a Blockspace report on Wednesday.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
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.