XAU/USD Current price: $2,599.70
- Prevalent US Dollar demand pushed Gold to its lowest since mid-September.
- The United States will release the October Consumer Price Index on Wednesday.
- XAU/USD slides for a third consecutive day, sellers are not yet done.
Spot Gold consolidates around the $2,600 mark on Tuesday after extending its recent slide to $2,589.57 a troy ounce, its lowest since September. Demand for the US Dollar (USD) dominates financial boards in a so far, data-light week, with the focus still on United States (US) political developments and their possible effects on the global economy. Tariffs-related anxiety reached European shores amid a continued economic setback in the Old Continent, while a political crisis in Germany intensified concerns.
Meanwhile, the poor stocks’ performance further fuels US Dollar demand. Most Asian and European indexes closed in the red, while Wall Street pared its latest advance. The three major indexes post losses, albeit limited.
Investors will closely follow upcoming US data. The country will publish the October Consumer Price Index (CPI) on Wednesday, foreseen at 0.2% MoM and 2.6% YoY, the latter higher than the previous 2.4%. The annual core CPI, however, is expected to remain steady at 3.3%. Other than that, market participants will keep speculating about what Trump’s return to the White House will mean for the US and the rest of the world.
XAU/USD short-term technical outlook
From a technical point of view, XAU/USD is poised to extend its decline. In the daily chart, the pair has fallen even further below its 20 Simple Moving Average (SMA), which slowly gains downward traction. The 100 and 200 SMAs keep heading higher below the current level, with the shorter one providing dynamic support at around $2,537.80. Technical indicators, in the meantime, have decelerated their slides well into the negative territory, not enough yet to consider a potential reversal or an interim bottom.
In the near term, and according to the 4-hour chart, the risk clearly skews to the downside. The 20 SMA head firmly south, well-below the longer ones, which also grind south. Finally, technical indicators resumed their slides after correcting extreme oversold conditions, still suggesting lower lows ahead.
Support levels: 2,588.70 2,572.45 2,560.65
Resistance levels: 2,612.60 2,627.10 2,639.05
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 attracts some buyers above 1.1050, FOMC Minutes in focus
The EUR/USD pair rises to near 1.1065 during the early European session on Wednesday. The US Dollar weakens against the Euro after US President Donald Trump's tariff policy takes effect. Later on Wednesday, traders will take more cues from the release of the FOMC Minutes.
GBP/USD appreciates to near 1.2850 due to easing trade tensions after Trump's comments
The GBP/USD pair advances for a second straight session, trading near 1.2820 during Asian hours on Wednesday. The pair’s uptick is supported by easing trade tensions after Trump signaled openness to negotiations with global partners, fueling hopes of a potential de-escalation in trade conflicts.
Gold: Third time a charm for buyers?
Gold price is looking to finally end its corrective downside early Wednesday, finding demand once again near the $2,970 region. A sustained upside in Gold price hinges on the market reaction to the reciprocal tariffs and the Minutes of the US Federal Reserve March policy meeting.
Bitcoin, Ethereum and Ripple target $73,000 BTC, $1,300 ETH, and $1.30 XRP
Bitcoin price hovers around $76,200 on Wednesday after falling 3.59% the previous day. Ethereum and Ripple followed BTC’s footsteps and continued their downward trend.
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.