XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) swung between gains and losses on Tuesday, finally ending the day mildly lower at 1204.71, rebounding from a dip below 1200. Gold prices failed to breach the 100-DMA located 1215.50 levels and lost steam as higher 10—year treasury yields, firm above 2.1%, dulled gold’s attractiveness as an alternative asset. Moreover, a subdued US dollar amid a data light day also capped the upside in gold prices. However, a strong support zone seems to have formed circa USD 1200 levels as gold prices have managed to consistently close above USD 1200 levels on daily basis.
Currently, the pair trades higher at 1206.22 levels, and seems to retest 10-DMA located at 1206.57 levels. A flattish US dollar and falling global equities coupled with the daily RSI ticked upwards at 40.41 appears supportive of gold prices. To the upside, the pair faces stiff resistance of 5-DMA located at 1208.22 levels beyond daily highs (1207.59). A break above 5-DMA, XAU bulls may take charge and push the pair higher to retest 100-DMA placed at 1215.15 levels. However, failure to hold above day’s low at 1204.20, the pair may once again test 1200 levels. Selling pressure is expected to intensify below 1200 mark which may drag the pair to 1190 levels. Overall, the pair likely to remain underpinned above 1200 levels ahead of US ADP employment change data and further upside for the pair is likely with a break above 100-DMA.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finished lower on Tuesday at 1077.24 levels, having once again bounced-off crucial support of 50-DMA located at 1066.74. XAU/EUR remained supported largely driven by the persistent weakness seen in the shared currency as it fell to fresh five-week lows versus the USD yesterday at 1.1153 levels. A series of recent upbeat macro data from the Euro area economies and also from the 19-nation bloc as whole has failed to lift the euro, citing risk-aversion ahead of ECB meeting due tomorrow.
Currently, the pair trades higher at 1080.18 levels, well supported above 20-DMA located at 1076.11 levels. XAU is likely to edge higher as the euro is expected to remain at lower levels sub 1.1200 ahead of a host services PMI readings across the Euro zone and the crucial US employment data due for release later in the day. The bullish RSI standing at 51.80 levels in the bullish zone also suggests more room for upside. The pair surpasses 5-DMA located at 1080 and heads higher to retest daily highs at 1080.40 levels. The pair is may retest previous highs at 1085.39 beyond daily highs and further test next resistance at 1090 levels. To the downside, selling pressure may intensify with a break below 20-DMA for a retest of 50-DMA placed at 1069.12 levels.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) closed lower on Tuesday at 141,121 levels, having failed to break past 20-DMA located at 145,328 levels as a relatively stronger yen across the board dragged the pair lower. The pair now trades near fresh highs at 144,643.53 levels, supported above 10-DMA located at 143,976 levels the yen shaved-off gains versus the US dollar ahead of US jobs data, pushing the pair higher. The pair has found good support of 144k levels and the upside seems to be capped by 5-DMA located at 144,674. The pair is on its way to breach 5-DMA and beyond that may head firmly higher to retest 20-DMA placed at 145,096 levels. The daily RSI at 45.676 has turned bullish indicating strength to the upside. However, a breach of 10-DMA support zone, a fresh sell-off may trigger, pushing the pair lower to retest 144k levels. Overall, the pair is likely to remain underpinned on a weaker yen outlook, strongly bid above 144k levels.
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
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Ethereum may sustain trading inside key range, ETH ETFs to be delayed until 2025
Ethereum is beginning to show signs of recovery on Thursday despite a second consecutive day of poor performance in Hong Kong's spot Ethereum ETFs. Bloomberg analyst James Seyffart has also shared that a spot Ethereum ETF may not happen in the US in 2024.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.