• Gold Price looks to extend the previous weeks’ upbeat momentum.
  • USD eases amid subsiding aggressive Fed tightening bets, risk-on flows.
  • XAUUSD is supported at 21-DMA amid light trading, will it retest $1,870?

Gold Price ended Friday with mild gains above $1,850 while having booked the second straight weekly gains, as the US dollar correction extended alongside the US Treasury yields’ amid subsiding aggressive Fed tightening expectations. This came after a slew of disappointing US economic data last week suggested that the world’s largest economy is losing momentum. Against this backdrop, “money markets have reduced their pricing for additional Fed rate rises by end-2022 from 193bps to 180bps. This though still implies rate rises at every remaining Fed meeting of 2022, including 50bps hikes in both June and July and at least 25bps at each of the remaining three, according to industry analysts.

A potential pause in the Fed’s aggressive rate hike track from September knocked down the US yields to the lowest level since mid-April, aiding the recovery attempts in the non-yielding gold price. The end-of-the-week flows also remained in play, helping gold recover ground after a two-day decline.

Starting out a new week on Monday, Gold Price is looking to build onto the previous gains, as the dollar and the yields continue holding the lower ground. The sentiment around the Fed, the Ukraine crisis, as well as, China reopening news will remain in play, as the Memorial Day holiday in the US could make for a thin session ahead of the end of the month. The German Preliminary inflation data could entertain traders amid a quiet start to the US Nonfarm Payrolls week.

Gold Price Chart: Daily chart

Having found strong buyers once again at the bearish 21-Daily Moving Average (DMA), now at $1,849, gold price is looking for a retest of the previous week’s high of $1,870.

The next upside target awaits at the mildly bullish 100-DMA at $1,890, above which the $1,900 will act as powerful resistance.

The 14-day Relative Strength Index (RSI) is closing in on the midline, still remains below the latter, suggesting that the bullish potential may be limited.

Alternatively, a firm break below the 21-DMA will challenge the bullish commitments at the critical 200-DMA, currently pegged at $1,842.

Failure to resist the latter will reinforce the selling interest, opening floors for a fresh downswing towards the May 18 low of $1,807.

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.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD is trading above 1.0450, displaying a modest rebound on a minor pullback in the US dollar. The US Treasury yields rebound amid cautious optimism, ahead of PCE inflation. The US Core PCE Price Index is seen easing to 4.7% YoY in May. 

EUR/USD News

GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD is advancing towards 1.2150 amid a broad US dollar retreat, despite a mixed market mood. BOE's Bailey said the UK economy is facing a very large real income shock. UK data and US PCE inflation awaited. 

GBP/USD News

Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold traded with a mild negative bias for the fourth successive day on Thursday and languished near a two-week low touched the previous day. The XAUUSD was last seen hovering around the $1,816 region and was pressured by the prospects for more aggressive rate hikes by the Fed.

Gold News

Breaking: Bitcoin price drops below $19,000

Breaking: Bitcoin price drops below $19,000

Bitcoin price has breached a critical area of support over the past few hours, dipping below $19,000. Transaction history shows that a large number of addresses acquired BTC above $20,000. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures