Gold capitalizes on dovish Fed expectations, advances above $1410

  • Broad USD weakness boosts the XAU/USD pair on Wednesday.
  • US Dollar Index erases the majority of NFP-inspired gains.
  • Dovish central bank expectations help gold attract investors.

After making a deep correction following June's impressive rally and dropping below the critical $1400 mark, the troy ounce of the precious metal rose sharply on Thursday and gained nearly $20. As of writing, the XAU/USD pair was trading near $1415, adding 1.2% on the day.

Earlier today, FOMC Chairman Powell in his testimony before the Congress said that trade uncertainties and concerns about global economy continued to weigh on the economy and repeated that the Fed would act 'as appropriate' to sustain the economic growth. Furthermore, Powell also noted that weak inflation could be even more persistent than the Fed was currently anticipating.

Renewed hopes of the Fed adopting an aggressive dovish stance following these remarks weighed on the USD and allowed the pair to turn north. Moreover, major central banks' dovish expectations allowed the precious metal to find demand as a better investment alternative.

Later in the day, the FOMC in its June meeting minutes reiterated that many participants saw a stronger case for a rate cut to put additional weight on the buck's shoulders. The US Dollar Index erased almost all of the gains that it posted since last Friday's employment report and was last down 0.4% on the day at 97.10.

Technical levels to watch for


Today last price 1414.36
Today Daily Change 16.68
Today Daily Change % 1.19
Today daily open 1397.68
Daily SMA20 1356.57
Daily SMA50 1311.69
Daily SMA100 1308.19
Daily SMA200 1277.51
Previous Daily High 1399.9
Previous Daily Low 1386.34
Previous Weekly High 1436.2
Previous Weekly Low 1382.02
Previous Monthly High 1438.66
Previous Monthly Low 1306.18
Daily Fibonacci 38.2% 1394.72
Daily Fibonacci 61.8% 1391.52
Daily Pivot Point S1 1389.38
Daily Pivot Point S2 1381.09
Daily Pivot Point S3 1375.83
Daily Pivot Point R1 1402.94
Daily Pivot Point R2 1408.2
Daily Pivot Point R3 1416.49



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims Williams-related gains, nears 1.1200 figure

The shared currency retreated sharply vs. its American rival after testing the 1.1280 price zone, as Fed’s representative rushed to counter Williams’ dovish words. EUR/USD at daily lows ahead of Michigan Consumer Confidence Index.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Michigan Consumer Sentiment survey preview: The pool of happiness spreads

The University of Michigan will issue its preliminary Survey of Consumers for July on Friday July 18th at 12:30 pm GMT. Consumer sentiment expected to gain modestly in July. Optimism should be supported by strong June jobs report.

Read more