Despite the not-so-dovish Fed-induced gold’s decline, gold managed to close the day in the green above $1950. The focus is now on the US fiscal stimulus talks and Initial Jobless Claims. Technically, XAU/USD finds solid support at the $1932 50-DMA support, as FXStreet’s Dhwani Mehta notes.
Key quotes
“The world’s most powerful central bank pledged to keep rates lower for longer while increasing tolerance for higher inflation. Fed’s projection of faster recovery in the economy and jobs market pushed the Treasury yields higher alongside the dollar. Fresh hopes of the US Congress reaching a fiscal stimulus deal also underpinned the greenback.”
“Gold could see a fresh leg lower, as the European traders hit their desks and react to the Fed optimism, emboldening the dollar bulls. Although the downside could be limited if the sentiment improves on Wall Street and weighs on the dollar’s move higher. The US Initial Jobless Claims will be also closely eyed later on Thursday.”
“The bulls are likely to find strong support at the upward-sloping 50-DMA at $1932. Therefore, a tepid bounce from that level cannot be ruled out. A daily closing above the $1950 level also keeps the buyers hopeful.”
“The 14-day Relative Strength Index (RSI), currently at 48.84, continues to paint a bearish picture. A daily closing below the 50-DMA support is needed to confirm the bearish reversal. Sellers would then target the critical support around the $1905 region.”
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 stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.