XAU/USD Current price: $2,332.56
- The Bank of England kept rates unchanged, downwardly reviewed inflation forecasts.
- Federal Reserve’s speakers will gather all the attention on Friday.
- XAU/USD may extend gains in the near term, needs to run above $2,340.
Gold price posted an interesting comeback on Thursday, as buyers continued to defend the $2,300 area. XAU/USD fell throughout the first half of the day as the US Dollar benefited from a poor market mood. The Greenback changed course ahead of Wall Street’s opening following the release of the United States (US) Initial Jobless Claims for the week ended May 3. The report showed seasonally adjusted initial claims jumped to 231,000, the highest level since August 2023. The figure revived markets optimism as it is a tepid sign of a loosening labor market. As a result, stock markets surged while the US Dollar fell.
The Bank of England (BoE) announced its decision on monetary policy but had no impact beyond that on the British Pound. The BoE left interest rates unchanged at 5.25% for the sixth consecutive meeting and hinted at soon-to-come rate cuts, as inflation is forecast to fall below target. Policymakers upwardly revised growth figures while noting they would like to see more evidence price pressures are receding before loosening the monetary policy.
On Friday, the US will publish the preliminary estimate of the May Michigan Consumer Sentiment Index, while multiple Federal Reserve (Fed) speakers will hit the wires.
XAU/USD short-term technical outlook
The daily chart for XAU/USD shows it stalled its recovery around a mildly bullish 20 Simple Moving Average (SMA), which stands at around $2,335. The longer moving averages maintain their upward slopes far below the current level, while technical indicators remain below their midlines without apparent directional strength. Overall, Gold extends its consolidative phase ahead of a relevant directional catalyst.
In the near term, and according to the 4-hour chart, XAU/USD is neutral. The pair met intraday buyers around a bullish 200 SMA but can’t extend gains beyond a mildly bearish 100 SMA. Finally, technical indicators stand flat within positive levels, suggesting bulls are more willing to jump in.
Support levels: 2,322.90 2,310.40 2,291.20
Resistance levels: 2,340.15 2,356.90 2,367.10
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
EUR/USD turns sideways below 1.0900 ahead of Fedspeak
EUR/USD is trading sideways below 1.0900 in European trading on Monday, despite a risk-on market mood. The pair, however, finds support from the struggling US Dollar and sluggish US Treasury bond yields, awaiting Fedspeak amid light European trading.
Gold price consolidates near $2,450, fresh record highs
Gold price holds its upbeat momentum intact on Monday, sitting at fresh record highs of $2,450 in the European session. The bright metal benefits from renewed hopes for Fed rate cuts and renewed geopolitical tensions surrounding Iran. Fedspeak is next on tap.
GBP/USD holds steady near 1.2700, Fedspeak in focus
GBP/USD is off the highs, consolidating near 1.2700 in the European trading hours on Monday. A subdued US Dollar supports the pair amid moderate risk appetite. Traders stay cautious on potential geopolitical escalation in Iran and ahead of Fedspeak.
Ripple stays above $0.50 on Monday as firm backs research on blockchain and quantum computing
XRP price holds steady above the $0.50 key support level and edges higher on Monday, trading at 0.5130 and rising 0.70% in the day at the time of writing.
Week ahead: Nvidia results and UK CPI falling back to target
What a week for investors. The Dow Jones reached a record high and closed last week above 40,000, for the first time ever. This is a major bullish signal even though gains for global stocks were fairly modest on Friday, and European stocks closed lower.