Gold moves off from multi-week highs post-US data

After refreshing its highest level since Feb. 27 at $1261.15, the precious metal surrendered some of its daily gains and is now being priced at $1256.20, still up $2.60 or 0.21% on the day.

Today's only relevant macro data from the United States revealed that the trade deficit shrunk more than expected in February. The goods and services deficit came in at $43.6 billion in February, down $4.6 billion from $48.2 billion in January. February imports fell by $4.3 billion while the exports dropped by $0.4 billion, narrowing down the overall deficit.

However, the yellow metal could extend the positive momentum in days to come as the participants will be waiting for the highly anticipated employment report on Friday. In case the non-farm figures are lower than the consensus, the investors could see that as a confirmation that the Fed would only go for two more rate hikes instead of three of four until the end of 2017.

Furthermore, President Trump is scheduled to meet with his Chinese counterpart President Xi Jinping on Thursday and Friday. Trump has warned earlier this week that the meeting would be "very difficult" and the investors could decide to stay closer to safer assets such as the yellow metal. 

Technical outlook

A sustained rise above the daily high at $1261.15 could open the doors towards $1263.75 (Feb. 27 high). If the XAU/USD is able to move above this level, it would refresh the highest level since Trump's election victory and could target $1270 (horizontal level). On the flip side, $1245 (200-DMA) is seen as the first support followed by $1240 (20-DMA) and $1235 (50-DMA).



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News