- Gold fell briefly back below $1800 again on Monday to hit fresh multi-week lows as traders mull upcoming risk events.
- Bears continue to eye a test of annual lows around $1780 against the backdrop of a still buoyant buck.
Spot gold (XAU/USD) prices briefly fell back below the $1800 per troy ounce level on Monday to hit fresh multi-week lows, though have since entered into a consolidation pattern on either side of the big figure. At current levels just above, the precious metal is trading with losses of over 0.5% on Monday, marking a continuation of recent weakness since XAU/USD dipped below its 200-Day Moving Average (in the $1830s) last week.
Earlier in the session, XAU/USD event dipped as low as the $1780s for the first time since early February this year and the bears are eyeing a test of annual lows around the $1780 level. Weak Chinese data for April released over the weekend put fears about global growth back in the spotlight and this seemed to weigh on global risk appetite a tad, though not enough to support the safe-haven precious metal.
Key upcoming risk events this week, which include remarks from NY Fed President and influential FOMC member John Williams later on Monday ahead of the release of the April US Retail Sales report ahead of comments from Fed Chair Jerome Powell on Tuesday, are likely keeping gold traders on the defensive. Fed policymakers have signaled that they are unanimously on board with rapid policy tightening in the coming quarters as the US economy continues to suffer from sky-high inflation.
Hawkish expectations for Fed policy against a backdrop of concerns about weakening global growth have supported the US dollar as of late, with the DXY on Monday trading just below multi-decade highs in the mid-104.00s. Dollar strength has been a key factor hurting gold as of late, given a strong buck means it's more expensive for the holders of international currency to buy USD-denominated commodities.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.