Gold: More scope to the downside ahead of FOMC Minutes

FXStreet Team FXStreet

Gold tracked stocks lower on Tuesday after Trump rejected stimulus talks though Trump’s latest call for partial stimulus lent some support, but not for long. Technical indicators favor the bears ahead of Fedspeak and FOMC minutes, FXStreet’s Dhwani Mehta reports.

Key quotes

“Trump called on for partial stimulus, urging Congress to approve paycheck protection and airline support. The sentiment received a fresh lift propping the Asian equities while the US dollar stalled its overnight rally.”

“Despite gold’s pullback, the path of least resistance remains to the downside, as the safe-haven dollar will likely remain in demand amid fresh concerns on the US economic recovery, in the wake of no prospects of fiscal stimulus until after the US elections. Also, markets would favor the US currency ahead of the Fedspeak and FOMC minutes, keeping the gold bulls at bay.”

“Looking at gold’s hourly chart, the price seems struggling to extend the recovery momentum from weekly lows, with the immediate upside barrier seen at horizontal 200-hourly Simple Moving Average (HMA), currently at $1890. Acceptance above the latter would expose the bearish 21-HMA at $1895. The next critical resistance awaits at $1902, the confluence of the 50 and 100-HMAs.”

“A failure to defend the weekly lows of $1873, the next robust support at $1860 will be put to test, which is the 100-day Simple Moving Average (DMA).”

Author

FXStreet Team

FXStreet

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.