Gold Price Analysis: XAUUSD holds above 200-DMA near $1,850 as focus turns to Friday’s US inflation data


  • Gold Price is holding above its 200-DMA in the $1,850 area and is back to nearly flat on the week.
  • Traders are weighing the tailwinds of a softer USD and US yields versus strong US equities, as key Friday inflation data looms.

Gold Price (XAUUSD) is for now holding just above its 200-Day Moving Average at $1,839 and trading near the $1,850 level, though still with a slight downside bias on the day, despite Thursday’s worse-than-expected US GDP figures and Wednesday’s not as hawkish as feared Fed minutes release. Indeed, in wake of the weak data and modest paring back of hawkish Fed bets, the US dollar is a tad weaker and US yields are nudging lower, a combination that would normally be a tailwind for gold.

But US equities are rallying, with the S&P 500 last trading up around 1.4% on the day and eyeing a test of its 21-Day Moving Average for the first time since mid-April. On the week, the index is trading with gains of more than 3.0% and this appears to be weighing on the safe-haven precious metal. Traders are attributing stock market gains to weak GDP data reducing the need for aggressive Fed tightening and to strong earnings from a few US companies, including retail giant Macy’s.

Either way, the better tone to risk appetite is for now keeping XAUUSD on the back foot. Having been as high as the $1,870 level earlier in the week, spot gold’s gains on the week have been eroded back to only about 0.2% from around 1.2%. But the recent pullback towards the 200-DMA might prove a good opportunity for the gold bulls to add to long positions if they think that hawkish Fed bets will continue to be pared in the weeks ahead and, as a result, the buck and US yields continue softening. If it contributes to the strengthening narrative that US inflation has peaked, Friday’s US April Core PCE report could lead to a further reduction of Fed tightening bets and gold could well end the week back at highs in the $1,870 area.

XAU/Usd

Overview
Today last price 1846.31
Today Daily Change -7.15
Today Daily Change % -0.39
Today daily open 1853.46
 
Trends
Daily SMA20 1853.08
Daily SMA50 1904.01
Daily SMA100 1885.84
Daily SMA200 1839.21
 
Levels
Previous Daily High 1868.13
Previous Daily Low 1840.85
Previous Weekly High 1849.45
Previous Weekly Low 1786.94
Previous Monthly High 1998.43
Previous Monthly Low 1872.24
Daily Fibonacci 38.2% 1851.27
Daily Fibonacci 61.8% 1857.71
Daily Pivot Point S1 1840.16
Daily Pivot Point S2 1826.87
Daily Pivot Point S3 1812.88
Daily Pivot Point R1 1867.44
Daily Pivot Point R2 1881.43
Daily Pivot Point R3 1894.72

 

 

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