Gold Price Analysis: XAU/USD recovers back to 50, 200DMAs around $1790 after Tuesday’s momenary dip

  • Spot gold has recovered back to close to its 50 and 200DMAs after a brief dip to $1770 on Tuesday.
  • Prices were weighed on Tuesday by Powell’s hawkishness and traders will be watching day 2 of his testimony on Wednesday.

Spot gold (XAU/USD) prices have recovered off of Tuesday lows on Wednesday and currently trade with gains of about 0.75% on the session and just under $1790. That means spot prices are currently trading just to the south of the 50 and 200-day moving averages, both of which reside close to $1792, and are trading close to the middle of recent $1770-$1810ish ranges.

Recent Price Action

To recap recent price action, spot gold prices on Tuesday reversed from as high $1810 to print session lows at $1770, in line with last week’s lows. Hawkish commentary from Fed Chair Jerome Powell, who essentially signaled intent to press on with monetary normalisation plans despite Omicron-related economic risks, spurred the downside at the time. Gold traders look to further comments from Fed Chair Jerome Powell at day two of his testimony before Congress, which will begin from 1500GMT after the release of the November ISM Manufacturing PMI survey. The survey is expected to point to continued underlying strength in the US manufacturing sector and economy, though also to high inflationary pressures and the impact of shortages.

Gold prices did not see any reaction to the release of a slightly stronger than expected ADP national employment estimate for Friday, which ought to solidify expectations that the official labour market survey will show strong employment growth in November. Markets suspect that this week’s heavy slate of US data should validate Powell’s bullish tone on the state of the economy and should support the argument for a quickening of the Fed’s QE taper plans.

Omicron uncertainty

High levels of uncertainty about how the Omicron Covid-19 variant will impact the global economy is keeping spot gold prices subdued close to its 50 and 200DMAs for now. But should the new variant turn out to be “super mild” as early (anecdotal doctor) reports have suggested, markets could become very risk on once more and Fed tightening expectations for 2022 could come surging back. This could be a bearish catalyst for gold and send it below recent lows in the $1770 area. In a bearish scenario, the $1760 level would be the next in sight and a break below that would open the door to a run lower to $1720, the September lows.


Today last price 1789
Today Daily Change 17.92
Today Daily Change % 1.01
Today daily open 1771.08
Daily SMA20 1821.08
Daily SMA50 1790.8
Daily SMA100 1792.73
Daily SMA200 1791.73
Previous Daily High 1808.78
Previous Daily Low 1769.96
Previous Weekly High 1849.14
Previous Weekly Low 1778.63
Previous Monthly High 1877.23
Previous Monthly Low 1758.92
Daily Fibonacci 38.2% 1784.79
Daily Fibonacci 61.8% 1793.95
Daily Pivot Point S1 1757.77
Daily Pivot Point S2 1744.45
Daily Pivot Point S3 1718.95
Daily Pivot Point R1 1796.59
Daily Pivot Point R2 1822.09
Daily Pivot Point R3 1835.41



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!