XAU/USD outlook: Gold under pressure from strong Dollar, attack at $1900 likely after consolidation

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold price fell to ten-day low on Tuesday, under increased pressure from rising dollar which is trading at the highest in ten months.

Fed’s narrative about one more rate hike towards the end of the year and signals that the central bank is likely to keep high rates for some time, until inflation returns to 2% target, keeps the greenback inflated and reducing demand for non-yielding yellow metal.

Traders focus on Friday’s released of US key consumer inflation report (PCE), Fed’s preferred inflation gauge, with stronger than expected data to add to downside pressure on gold.

Technical picture on daily chart is still unclear as MA’s are in full bearish setup but 14-d momentum is touching the line dividing positive and negative territory and stochastic is oversold.

Fresh bears faced headwinds at $1910 support (Fibo 61.8% of $1884/$1952 upleg), which guards pivotal support at $1900 (Fibo 76.4% Sep 14 spike low / psychological).

Immediate bears are expected to remain intact while the action holds below broken Fibo 50% level ($1918), though larger bias should stay negative while the base of daily Ichimoku cloud ($1922) caps.

Res: 1918; 1922; 1929; 1936.
Sup: 1910; 1904; 1900; 1889.

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

1. R3 1935.66
2. R2 1931.47
3. R1 1923.59
PP 1919.4
1. S1 1911.52
2. S2 1907.33
3. S3 1899.45

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: Bears retain control below 1.1780-1.1770 confluence breakpoint

The EUR/USD pair remains on the back foot through the Asian session on Friday and currently trades just above mid-1.1700s, well within striking distance of a nearly one-month low set the previous day.

GBP/USD seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.