XAU/USD outlook: Gold rises after Trump's latest move to fire Fed Governor deepened uncertainty

Slobodan Drvenica Windsor Brokers

Gold

Gold rose to two-week high on Tuesday, driven by fresh wave of risk aversion sparked by growing uncertainty on decision of President Trump to fire a Fed Governor Cook.

Trump’s conflict with the US policymakers is escalating again, after a campaign to remove Fed Chair Powell, which Trump eventually sidelined, but remained on track to secure dovish majority in the FOMC after failing to convince them for more radical rate cuts.

Fresh strength cracked important barrier at $3385 (upper triangle boundary / Fibo 76.4% of $3408/$331 bear-leg) but was so far unable to break higher.

Technical picture on daily chart is still mixed with positive signals from today’s formation of bullish engulfing pattern (still to be confirmed) and price action being underpinned by thick daily cloud, while neutral momentum studies and overbought Stochastic offset positive impact.

Repeated daily close above broken Fibo 50% ($3360) will be a minimum requirement to keep near-term bias with bulls, while close above $3371 (broken Fibo 61.8%) would boost optimism for push through triangle’s upper trendline and expose key resistances at $3400/08 (psychological / Aug 8 top).

Res: 3385; 3400; 3408; 3431.
Sup: 3371; 3360; 3353; 3348.

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

1. R3 3391.45
2. R2 3383.87
3. R1 3375
PP 3367.43
1. S1 3358.56
2. S2 3350.98
3. S3 3342.11

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 onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.