Gold Price Forecast: XAU/USD jumped to a fresh weekly high, struggles to maintain gains
XAU/USD Current price: 2,037.05
- Without relevant macroeconomic data, the focus stays on Fed’s speakers.
- The US Dollar stays under moderate selling pressure, XAU/USD reaches a fresh weekly high.
- XAU/USD gained momentum with Wall Street’s opening, needs to break through the intraday high.
Spot Gold spent the first half of the day trading lifeless in the $2,030 price zone, picking up some steam after Wall Street’s opening. XAU/USD jumped to $2,044.64 as the positive tone of Wall Street undermined demand for the US Dollar. The Greenback stayed on the back foot for most of the day, although it posted limited losses against most major rivals amid the absence of first-tier events.
Market players are repositioning after major central banks’ monetary policy announcements, most of which included pouring cold water on rate cut hopes. Federal Reserve (Fed) speakers are flooding the wires this week, and despite a generalized optimism regarding inflation moving in the right direction, policymakers also warned about the dangers of moving too early or too fast.
Meanwhile, US Treasury yields shed early gains, also weighing on the USD. The 10-year Treasury note offered as much as 4.13% ahead of the opening, now down to 4.09%, unchanged on the day.
XAU/USD short-term technical outlook
XAU/USD trades around $2,040, posting gains for a second consecutive day. Technical readings offer a neutral stance. In the daily chart, technical indicators hover around their midlines without directional strength. At the same time, the pair barely holds above a directionless 20 Simple Moving Average (SMA), although the longer ones maintain their upward slopes well below the current level.
In the near term, and according to the 4-hour chart, the risk skews to the upside. XAU/USD surged above its 20 and 100 Simple Moving Averages (SMAs), with the shorter one maintaining its bearish slope. At the same time, technical indicators crossed their midlines into positive territory, with moderated upward strength. Gold would need to run past the aforementioned intraday high to maintain the positive bias in the upcoming sessions.
Support levels: 2,022.75 2,009.10 1,988.90
Resistance levels: 2,044.60 2,053.10 2.065.60
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
