XAU/USD outlook: Bulls take a breather under new record high ahead of key US inflation data

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold price holds within a narrow consolidation under new record high on Thursday and reduced pace ahead of release of US inflation report.

Economists expect US consumer prices to rise further in August, mainly to be lifted by import tariffs, although optimism emerged from Wednesday’s lower than expected US producer Price Index in August that adds to expectations for Fed rate cut next week.

Fed is widely expected to deliver a 25-basis points cut next week, following a series of disappointing data which signal significant weakening in the labor sector, but the latest speculations suggest that possibility of 50-basis points cut is also in play.

Gold may come under pressure if CPI data beat forecast and receive fresh boost if August readings disappoint.

Overall picture remains supportive of the yellow metal, as high uncertainty on heated geopolitical situation and darkened economic outlook, are likely to continue to fuel safe-haven demand.

Overbought conditions on daily chart contribute to scenario of a partial profit-taking, though traders are likely to remain cautious and use limited dips to re-enter larger bullish market.

Res: 3657; 3674; 3690; 3700.
Sup: 3600; 3577; 3567; 3536.

Interested in XAU/USD technicals? Check out the key levels

1. R3 3697.1
2. R2 3677.31
3. R1 3658.8
PP 3639.02
1. S1 3620.51
2. S2 3600.72
3. S3 3582.22

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD faces some resistance near 100-SMA on H4, around 1.1830 zone

The EUR/USD pair gains some follow-through positive traction for the second consecutive day and climbs to the 1.1830 region during the Asian session on Thursday. The US Dollar remains on the back foot amid concerns about the economic fallout from US President Donald Trump's erratic trade policies and acts as a tailwind for spot prices.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Top Crypto Gainers: Polkadot, Near Protocol, Uniswap lead market rebound

Altcoins, such as Polkadot, Near Protocol, and Uniswap, are leading gains over the last 24 hours as Bitcoin jumped 6% on Wednesday. The altcoins are holding steady at press time on Thursday following a rebound the previous day, testing the waters around their 50-day Exponential Moving Average.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.