Gold: Lousy US GDP data to trigger a sell the fact


Share:

Gold (XAU/USD) witnessed another attempt to the upside on Wednesday and tested the record highs of $1981.34 after the US Federal Reserve (Fed) struck a dovish tone. On Thursday, the yellow metal is easing, as the Fed’s dovishness lifted the sentiment on the global markets, although the optimism was capped by the US fiscal wrangling and nervousness ahead of the key US Q2 Preliminary GDP report, due later today at 12:30 GMT. What’s more, technical set up points to further correction, FXStreet’s Dhwani Mehta briefs.

Key quotes

“Markets have already priced-in the terrible GDP report and dovish Fed. Therefore, the bright metal could likely see ‘Sell the fact’ trading in play on the data release, as the greenback could attempt a comeback amid resurgent safe-haven demand. The focus will also remain on the impending US stimulus talks and fresh virus updates.”

“The retracement from post-Fed highs and the subsequent consolidation around $1965 has carved out an ascending triangle formation on the hourly chart. The pattern will get validated should the price close the hour below the rising trendline support at $1957. The immediate cushion is aligned at the horizontal 50-hourly Simple Moving Average (HMA) at $1953.”

“A break below which the upward sloping 100-HMA at $1937 could likely offer some respite to the XAU bulls. The hourly RSI has turned south and looks to pierce through the midline from above, indicating that the downside appears more compelling.”

“If the bulls manage to defend the critical 21-HMA at $1962.65, a bounce-back towards the confluence of the record highs and the horizontal trendline resistance just above $1981 cannot be ruled.”

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD trades firmer above 1.0800 ahead of Eurozone PMI data

EUR/USD trades firmer above 1.0800 ahead of Eurozone PMI data

EUR/USD is extending gains above 1.0800 in the European morning on Thursday. A broadly subdued US Dollar and US Treasury bond yields, amid a risk-on mood, are helping the pair ahead of the top-tier preliminary PMI data from the Eurozone and the US. 

EUR/USD News

GBP/USD trades with modest gains near 1.2650, awaits UK, US PMIs

GBP/USD trades with modest gains near 1.2650, awaits UK, US PMIs

GBP/USD posts mild gains to trade near mid-1.2600s in early Europe on Thursday. The pair is finding support from a weaker US Dollar and an improved risk appetite. All eyes now remain on the UK and the US flash PMI data for fresh trading impetus. 

GBP/USD News

Gold eyes a fresh uptrend on a sustained move above $2,035

Gold eyes a fresh uptrend on a sustained move above $2,035

Gold price has resumed its bullish momentum near $2,030 early Thursday, having paused its recovery rally on Wednesday. A risk-on market environment is acting as a headwind for the US Dollar, despite the hawkish US Fed January meeting Minutes.

Gold News

Sei price deviation below range high may mean only one thing for SEI holders – 18% crash

Sei price deviation below range high may mean only one thing for SEI holders – 18% crash

Sei (SEI) price has had a shocking and awe-inspiring rally over the past few weeks and has raked in 345% gains in the past two months. But the recent developments suggest SEI could be ready to slide lower.

Read more

NVDA Q4 results trounce consensus

NVDA Q4 results trounce consensus

Nvidia beat earnings consensus from Wall Street by a large margin on Wednesday, and the stock jumped more than 3% afterhours. Consensus had been $4.64 in adjusted EPS for the quarter ending in December, but Nvidia posted $5.16.

Read more

Forex MAJORS

Cryptocurrencies

Signatures