XAU/USD Current price: $2,178.93

  • A souring market mood and caution keep XAU/USD afloat on Monday.
  • Investors await an update on the United States Consumer Price Index.
  • XAU/USD consolidates gains, slight chance for a corrective slide.

Gold price holds near record highs on Monday, with XAU/USD changing hands at around $2,184 a troy ounce. The bright metal hit $2,195.22 on Friday, as the US Dollar plunged following the release of the United States (US) Nonfarm Payrolls (NFP) report, indicating a healthy job creation level alongside a higher unemployment rate. Additionally, wages rose by less than anticipated, suggesting easing price pressures. Overall, the employment report confirmed the Fed's path towards normalizing the monetary policy.

XAU/USD maintains gains despite the US Dollar turning higher with Wall Street's opening, as the three major indexes quickly turned red. The dismal mood was triggered by the  Survey of Consumer Expectations for February prepared by the New York Federal Reserve. Consumers expect inflation to remain elevated, at 2.7% in the three-year range and up to 2.9% in the five-year perspective.

Investors are also cautious ahead of Tuesday's release of the United States (US) Consumer Price Index (CPI). The February CPI is foreseen at 3.1% YoY, matching January's figure, while the core reading is expected to have eased to 3.7% from 3.9% previously.  

XAU/USD short-term technical outlook

The XAU/USD pair daily chart shows that it holds on to modest gains, with the bullish run losing steam after advancing for nine days in a row. The pair is extremely overbought, although it may enter a consolidative phase instead of a corrective slide, as there are no signs of selling interest. Technical indicators have lost their upward strength but remain at extreme levels as XAU/USD develops over $100 above a bullish 20 Simple Moving Average (SMA). The longer moving averages remain below the latter and also head north, reflecting persistent buying interest.

Gold corrective consolidation is evident in the near term. The 4-hour chart shows XAU/USD seesaws around $2,180 without directional strength. At the same time it remains above a firmly bullish 20 SMA, which advances way beyond above also bullish longer moving averages. Nevertheless, technical indicators turned south, maintaining downward slopes within positive levels. A corrective slide towards $2,140/$2,150 seems likely, although a steeper slide is still out of the picture.

Support levels: 2.174.60 2,166.10 2,145.60  

Resistance levels: 2,189.00 2,200.00 2,215.00

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 recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Majors

Cryptocurrencies

Signatures