XAU/USD Current price: $2,646.50
- Market players lifted bets of another 50 bps rate cut by the Federal Reserve.
- United States data surprised negatively, hurting demand for the US Dollar.
- XAU/USD trades at fresh record highs without signs of giving up.
Gold price hit yet another record high on Tuesday, changing hands as high as $2,639.99 a troy ounce during Asian trading hours, to break higher after Wall Street’s opening. The absence of relevant macroeconomic releases left financial markets without a fresh directional catalyst throughout the first half of the day, although the prevalent US Dollar’s weakness kept XAU/USD on the bullish side.
The bright metal extended gains beyond the $2,640 mark during the American session and after the release of discouraging United States (US) data. Consumer sentiment in the country deteriorated in September, with The Conference Board's (CB) Consumer Confidence Index falling to 98.7 in September after printing at 105.6 in August. Even further, the Present Situation Index fell by 10.3 points to 124.3, while the Expectations Index declined by 4.6 points to 81.7 but remained above 80. Readings below it usually anticipate a recession. As a result, market participants lifted bets the Federal Reserve (Fed) could trim interest rates by 50 basis points (bps) once again in November.
Other than that, the Richmond Fed Manufacturing Index contracted to -21 in September from the previous -19 while missing the -17 anticipated. The macroeconomic calendar will remain scarce on Wednesday, with the focus moving to the end of the week when the US will release the August Personal Consumption Expenditures (PCE) Price Index.
XAU/USD short-term technical outlook
XAU/USD trades around $2,645 with no signs of giving up. In the daily chart, the pair keeps posting higher highs and higher lows, while technical indicators maintain modest bullish slopes within overbought levels. At the same time, the pair develops far above bullish moving averages, with the 20 Simple Moving Average (SMA) now hovering at around $2,545.
The near-term picture also skews the risk to the upside, although some timid divergences anticipate a potential corrective slide. In the 4-hour chart, moving averages accelerated north far below the current level, in line with continued buying interest. However, the Momentum indicator keeps grinding lower in positive territory, diverging from price action. Finally, the Relative Strength Index (RSI) indicator maintains the positive bias, advancing near overbought readings just ahead of overbought readings.
Support levels: 2,628.10 2,613.50 2,598.10
Resistance levels: 2,650.00 2,675.00 2,690.00
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
Editors’ Picks
AUD/USD weighed down by China, tariffs
AUD/USD remained on the back foot, slipping back to the area of multi-year lows around 0.5950 on the back of mounting fears surrounding tariffs and their impact on the Chinese economy.
EUR/USD refocuses on 1.1000 amid tariffs jitters
EUR/USD reversed two daily pullbacks in a row an d managed to advance to the boundaries of the 1.1000 barrier on the back of fresh weakness hurting the US Dollar and persistent tariff fears.
Gold erases gains, back to the $2,980 zone
Gold prices now lose extra ground and slip back to the area of daily troughs near $2,980 mark per troy ounce following an unsuccesful attempt to maintain the trade above the critical $3,000 level earlier in the day.
XRP drops 3% as Ripple announces $1.25 billion acquisition of prime brokerage firm Hidden Road
Ripple announced on Tuesday that it is acquiring prime brokerage firm Hidden Road to enhance its institutional offerings and increase the adoption of the RLUSD stablecoin and the XRP Ledger (XRPL).
The Fed is looking at a hefty price level
We are still in thrall to tariffs, the faux-macro “data” driving markets. The WSJ editorial board advised other countries to take their tariffs to zero so that Trump’s “reciprocal” tariffs will have to be zero, too. Cute, but no cigar.
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.