XAU/USD Current price: $1,754.85
- US data again boost the US dollar across the boards.
- US yields keep rising ahead of next week’s FOMC meeting.
- XAU/USD short-term outlook negative, under $1,745 next potential target near $1,720.
-637674072113538481.png)
Gold prices tumbled on Thursday, affected by rising US yields, a stronger dollar, and technical factors. The ounce troy dropped to $1,745, hitting the lowest level in a month. Economic data from the US triggered a rally of the dollar and also the decline in Treasuries. The US Dollar Index rose toward 93.00, reaching the highest level since August 27. The US 10-year yield jumped to 1.35%, matching last week's high and then pulled back. The 1.35% barrier has become critical, and a break higher could trigger more of the current moves in favor of the dollar and against gold.
Following Wednesday’s upbeat US economic data, on Thursday the retail sales report showed a 0.7% increase in August, above expectations; and the Philly Fed soared to 30.7, against market consensus of a modest decline to 19. Those figures took more relevance ahead of the FOMC meeting next week. Gold prices could remain under pressure until Fed’s announcement as market participants continue to digest the latest positive economic numbers.
Gold price short-term technical outlook
The sharp decline sent technical indicators to the downside. The RSI is at oversold extreme levels but still pointing south with no signs of favoring a consolidation ahead or a rebound. The slide was capped by the $1,745/50 support area that is a strong barrier. A break below should open the doors to more losses, probably targeting the $1,725 area.
A bullish correction could find resistance at $1,775. The band between $1,775/80 is now a critical obstacle. If XAU/USD recovers levels above, it could alleviate the bearish pressure. To negate the negative bias, gold needs a daily above $1,833 while in the short-term, the downside pressure remains intact, even after the $50 sell-off.
Support levels: 1,745.00 1,723.50 1,714.95
Resistance levels: 1,764.50 1,779.45 1,795.00
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 clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.