Gold Price Analysis: XAU/USD drops 0.5% on dollar strength

Gold drops as dollar gains on Fed statement.
The yellow metal risks falling to its 50-day SMA support.

Omkar Godbole FXStreet Contributor

Gold is feeling the pull of gravity on Thursday with the US dollar gaining ground against major currencies.

The yellow metal is trading near $1,950 at press time – down 0.5% on the day. Meanwhile, the dollar index, which gauges the greenback's value against majors, is up 0.30% at 93.41.

The dollar seems to be drawing bids on the back of the not-so-dovish Fed statement released Wednesday.

From a technical analysis perspective, gold looks south, having faced rejection at the top end of a one-month-long descending triangle for the second straight day on Wednesday.

The 50-day simple moving average (SMA) at $1,931 could offer support, which, if breached, would expose the lower end of the descending triangle, currently at $1,909.

Alternatively, a daily close above Wednesday's high of $1,973 would revive the broader uptrend and open doors for a break above $2,000.

Daily chart

Trend: Neutral-to-bearish

Technical levels

XAU/USD

Overview
Today last price	1950
Today Daily Change	-3.72
Today Daily Change %	-0.50
Today daily open	1959

Trends
Daily SMA20	1945.01
Daily SMA50	1929.24
Daily SMA100	1831.41
Daily SMA200	1709.96

Levels
Previous Daily High	1973.64
Previous Daily Low	1949.93
Previous Weekly High	1966.54
Previous Weekly Low	1906.62
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1964.58
Daily Fibonacci 61.8%	1958.99
Daily Pivot Point S1	1948.07
Daily Pivot Point S2	1937.15
Daily Pivot Point S3	1924.36
Daily Pivot Point R1	1971.78
Daily Pivot Point R2	1984.57
Daily Pivot Point R3	1995.49

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD bounces back above 1.3200 despite political drama in UK

GBP/USD extends the rebound above 1.3200 in the second half of the day on Friday but the pair is still down more than 1% for the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay.

EUR/USD recovers above 1.1450 on USD pullback

EUR/USD rebounds from the three-month low it touched below 1.1420 and holds above 1.1450 in the second half of the day on Friday. Still, the cautious market mood on growing uncertainty surrounding the next round of US-Iran talks makes it difficult for the pair to gather momentum.

Gold remains below $4,200, looks to post weekly losses

Gold struggles to gather recovery momentum and trades below $4,200 in the American session on Friday, pressured by the hawkish Fed tone and the renewed uncertainty surrounding the next round of US-Iran talks. Despite the bullish action seen in the first half of the week, XAU/USD remains on track to close in negative territory.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.