Gold Price Forecast: XAU/USD reaches $2,360 on broad USD weakness

Valeria Bednarik FXStreet

XAU/USD Current price: $2,359.66

A batch of United States tepid data boosted the mood and put the US Dollar under selling pressure.
Wall Street recovered its poise despite softer-than-expected US employment and growth figures.
XAU/USD turned bullish in the near term and may run past the June high at $2,368.59.

A sharp US Dollar decline pushed XAU/USD above the $2,360 mark for the first time in over two weeks. A rough of tepid United States (US) data pushed the US Dollar down, although the major catalyst was the ISM Services PMI, which unexpectedly dropped to 48.8 in June after posting 53.8 in May, also missing the expected 52.5.

The country also reported that Challenger Job Cuts showed US-based employers announced 48,786 cuts in June, down 23.6% from the 63,816 cuts announced in May. Furthermore, the May Goods and Services Trade Balance posted a deficit of $75.1 billion, better than anticipated, while Initial Jobless Claims for the week ended June 28 surged to 238K, worse than the 235K anticipated by market players. Finally, the ADP report on private job creation showed that the sector added 150K new positions in June, below the revised 157K from May and missing the 160K expected.

Wall Street also gained impetus as a result of the better market mood. Only the Dow Jones Industrial Average trades in the red, down 0.12%. The S&P500 and the Nasdaq Composite, however, trade in the green, while government bond yields are down, further weighing on the Greenback.

XAU/USD short-term technical outlook

From a technical point of view, the daily chat for the XAU/USD pair shows the bright metal met buyers around a flat 20 Simple Moving Average (SMA), currently at around $2,330, while the 100 and 200 SMAs keep heading north far below the shorter one. Technical indicators, in the meantime, picked up momentum within positive levels, in line with another leg north. A relevant resistance level can be found at $2,368.59, the June monthly high.

In the near term, and according to the 4-hour chart, the risk also skews to the upside. XAU/USD trades above all its moving averages, although the 20 SMA advances between directionless, longer ones. Technical indicators, in the meantime, flirt with overbought readings without signs of upward exhaustion.

Support levels: 2,341.50 2,329.20 2,313.60

Resistance levels: 2,368.60, 2,387.60 2,400.00

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.

AUD/USD: Next upside target comes at 0.7000

AUD/USD has advanced further, clinching its third consecutive day of gains and trading at shouting distance from the key 0.7000 threshold on Tuesday. The widespread improved sentiment in the risk complex helped the Aussie maintain its upside momentum, while the fresh selling impulse in the Greenback also contributed to the move.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold stays firm; looks at $4,200

Gold builds on Monday’s marginal bounce, although it struggles to reclaim the key $4,200 mark per troy ounce so far on Tuesday. The yellow metal’s advance comes on the back of the fresh downside momentum in the US Dollar in tandem with retreating US Treasury yields across the curve.

Ethena Price Forecast: ENA corrects as Ether.Fi launches stablecoin on the protocol

Ethena (ENA) trades near $0.24000 on Tuesday amid growing technical weakness. The Ethereum Layer-2 token has shed some of its recent gains, which peaked at $0.2946 on September 27, reinforcing profit-taking and buyer exhaustion. An extended sell-off would bring ENA to test the psychological support at $0.2000 and key technical levels further down.

Japanese Yen nears 158.00: Two analysts agree it's bullish, and disagree on how far the breakout goes

The JPY is drifting near 158.00 against the USD ahead of a busy week of Japanese data and a still-unclear BoJ timetable. The two most recent FXStreet analyses agree on the direction, but they disagree on the target and the mechanism.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.