XAU/USD outlook: Gold eases on calmer geopolitical situation, but larger bulls hold grip

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold price edged lower on Thursday after hitting a series of new marginally higher highs in past three days ($4630/34/43).

Today’s calmer rhetoric from President Trump over Iran crisis and conflict with Fed Chief Powell, cooled the sentiment and paused recent rally for now.

Trump opted for wait and see strategy instead of military action in Iran, as he initially signaled and sidelined the story about removing Powell from his position before his mandate ends in May.

However, overall picture remains bullish, with no significant changes in the key factors that drive metal’s price, suggesting that bulls may take some time for consolidation before resuming.

Today’s dip was so far limited, with price holding above $4600 after a brief dip to $4581, although overbought daily studies (also RSI bearish divergence), keep the downside vulnerable.

First significant supports lay at $4550 (former top / broken bull-channel upper line), followed by $ 4500 zone (psychological / 10DMA / Fibo 38.2% of $4274/$4643 upleg) where extended dips should find firm ground.

Res: 4643; 4687; 4700; 4720.
Sup: 4581; 4550; 4500; 4458.

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 loses traction, breaks below 1.1900

EUR/USD comes under extra downside pressure, breaching below the 1.1900 support once again on Tuesday. The improved tone in the US Dollar keeps the pair on the back foot after two consecutive daily advances. In the meantime, prudence is expected to kick in ahead of the release of the key US Nonfarm Payrolls on Wednesday.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.