XAU/USD Current price: $2,562.90
- Better than-anticipated United States data maintained investors cautiously optimistic.
- The Federal Reserve will announce its decision on monetary policy on Wednesday.
- XAU/USD is poised to extend its decline in the near term, bulls may surge on dips.
Gold price is marginally lower on Tuesday, with XAU/USD trading in the $2,560 region in the American session. The US Dollar gathered modest strength ahead of Wall Street’s opening amid better-than-anticipated United States (US) data. Local indexes hold on to modest gains, reflecting the optimistic mood that undermines demand for the safe-haven metal.
Still, financial boards’ activity is limited ahead of major central banks’ announcements. The Federal Reserve (Fed) will kick-start the wave of announcements on Wednesday, followed by the Bank of England (BoE) on Thursday and the Bank of Japan (BoJ) on Friday. The Fed is widely anticipated to trim interest rates for the first time in years, a movement that has been priced in long ago. The BoE, on the other hand, will likely remain on hold while speculative interest sees the BoJ hiking rates.
In anticipation of the Fed, speculative interest has priced in a 25 basis points (bps) rate cut, although there are some hopes the central bank will go for a wider trim of 50 bps. The level of aggressiveness from US officials will determine what will happen with Greenback on Wednesday. The more dovish the decision, meaning a 50 bps trim and anticipation of more cuts coming, the more will suffer the USD. The US Dollar, on the other hand, can recover sharply should the central bank deliver a more hawkish stance.
XAU/USD short-term technical outlook
The daily chart for the XAU/USD pair shows the slide seems corrective. The pair keeps developing above all its moving averages, with the 20 Simple Moving Average (SMA) partially losing its bullish strength but well above the longer ones, at around $2,520. Technical indicators, in the meantime, remain well above their midlines, although lacking clear directional strength. The Relative Strength Index (RSI) indicator eases from near overbought readings but not enough to anticipate a steeper decline.
In the near term, however, the risk skews to the downside. In the 4-hour chart, XAU/USD has broken below a bullish 20 SMA, while the 100 and 200 SMAs aim marginally higher, far below the current level. Finally, technical indicators aim south almost vertically, currently challenging their midlines and hinting at another leg south, particularly if Gold pierces the intraday low at $2,561.65.
Support levels: 2,561.65 2,550.00 2,542.40
Resistance levels: 2,574.80 2,590.00 2,605.00
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
EUR/USD regains traction above 1.1000 ahead of US CPI release
EUR/USD has found fresh buyers and jumps above 1.1000 in the European session on Thursday. The pair gains on the German coalition deal and Trump's 90-day pause on reciprocal tariffs, which have lifted risk senitment while exacerbating the US Dollar pain ahead of the US CPI data release.
GBP/USD trades firm above 1.2850, US CPI data awaited
GBP/USD sustains the rebound above 1.2850 in European trading hours on Thursday. The British Pound capitalizes on risk appetite, courtesy of Trump's tariff pause, allowing the pair to recover ground. But further upside hinges on the US CPI data and US-Sino trade updates.
Gold price eases from weekly top amid risk-on mood; still well bid above $3,100 ahead of US CPI
Gold price trims a part of its strong intraday gains to a one-week high touched during the early European session on Thursday and currently trades just above the $3,100 mark. Concerns about escalating US-China trade tensions, along with fears about a tariffs-driven economic slowdown, turn out to be key factors that continue to underpin the safe-haven bullion.
US CPI data set to reveal March inflation dip as markets weigh impact of Trump’s tariffs
As measured by the CPI, inflation in the US is set to rise at an annual pace of 2.6% in March, down slightly from the 2.8% reported in February. Core CPI inflation, which excludes the volatile food and energy categories, is expected to ease to 3% in the same period from a year earlier
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
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.