XAU/USD Current price: $2,656.69

  • Geopolitical tensions in the Middle East undermined the market mood on Wednesday.
  • The US ADP report hinted at a resilient labor market, hints at modest interest rate cuts.
  • XAU/USD aims to resume its advance in the near term, resistance at around $2,670.

Spot Gold hovers around $2,650 a troy ounce on Wednesday, confined to a tight trading range amid a generally pessimistic market mood favoring both Gold and the US Dollar (USD). The Middle East conflict, with Israel and Iran launching back-and-forth attacks, weighs on investors’ mood. Fears of supply disruptions push crude oil prices higher and speculative interest into safe-haven assets. Stock markets traded mixed in Asia and Europe, as the massive Chinese stimulus announced last week partially offsets geopolitical tensions.

Wall Street opened mixed, with only the Dow Jones Industrial Average (DJIA) trading in positive territory, up a modest 0.02% at the time of writing. The Nasdaq Composite and the S&P500 trade in the red, albeit losses are modest. American traders are digesting United States (US) employment data, as the ADP report on private job creation showed 143,000 new positions were added in September, better than the 120,000 anticipated by market participants.

The encouraging figures back the Greenback ahead of the September Nonfarm Payrolls report to be released on Friday. Federal Reserve (Fed) officials expressed concerns about the employment situation, shifting the focus away from inflation. Generally speaking policymakers are confident about inflation moving towards their 2% goal. However, the once-hot job market has lost steam over the last few months, and softer-than-anticipated figures could prompt the Fed into more aggressive rate cuts. That’s not the case following the ADP release, one of the reasons US indexes stay afloat.

XAU/USD short-term technical outlook  

The daily chart for XAU/USD shows it trimmed early losses and hover around its opening. Moving averages head firmly north, far below the current level, maintaining the long-term bullish trend alive. Technical indicators, in the meantime, turned lower, although they stand far above their midlines and with limited downward strength, falling short of suggesting a steeper decline.

In the near term, and according to the 4-hour chart, XAU/USD is aiming to resume its advance. The pair is trading just above a flat 20 SMA, while the 100 and 200 SMAs aim higher far below the shorter one, all supportive of a bullish extension. Finally, technical indicators resumed their advances and are currently crossing their midlines into positive territory, reflecting increased buying interest.

Support levels: 2,652.60 2,638.10 2,623.25

Resistance levels: 2,670.00 2,685.00 2,700.00

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


Recommended Content

Editors’ Picks

EUR/USD accelerates losses to 1.0930 on stronger Dollar

EUR/USD accelerates losses to 1.0930 on stronger Dollar

The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.

EUR/USD News
GBP/USD plummets to four-week lows near 1.2850

GBP/USD plummets to four-week lows near 1.2850

The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.

GBP/USD News
Gold trades on the back foot, flirts with $3,000

Gold trades on the back foot, flirts with $3,000

Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.

Gold News
Can Maker break $1,450 hurdle as whales launch buying spree?

Can Maker break $1,450 hurdle as whales launch buying spree?

Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

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.

Read More

Majors

Cryptocurrencies

Signatures

Best Brokers of 2025