- Gold price has surpassed the immediate hurdle of $1,790.00 as the US Dollar Index has resumed its downside journey.
- A decline in US PPI figures is going to delight the Federal Reserve.
- Gold price has resumed its upside journey after a positive divergence formation.
Gold price (XAU/USD) has climbed above the critical hurdle of $1,790.00 in the Asian session. The precious metal has witnessed firmer demand as the US Dollar is facing immense heat. Meanwhile, the US Dollar Index (DXY) is hovering around Thursday’s low at 104.70 and is expected to display losses ahead amid a risk appetite theme underpinned by market participants.
S&P500 futures are displaying a subdued performance in Tokyo after snapping a three-day losing streak on Thursday. The 10-year US Treasury yields have witnessed marginal pressure but are still holding at 3.48%.
According to the consensus, the headline PPI in the United States is expected to drop to 7.4% from the prior release of 8.0%. Also, the core PPI is seen lower at 6.0% vs. the former figure of 6.7% on an annual basis. An occurrence of the same is going to cheer the Federal Reserve (Fed) as the economy has managed to incentivize producers to announce a decline in prices of ultimate goods and services due to weaker demand.
New week, the release of the United States inflation data will provide meaningful cues for further guidance. The headline CPI is expected to remain unchanged at 7.7% while the core inflation might inch higher to 6.4%.
Gold price technical analysis
On an hourly scale, Gold price has resumed its upside journey after a Positive Divergence formation. The precious metal is continuously making higher lows while the Relative Strength Index (RSI) (14) formed a lower low, which indicates an oversold oscillator in an uptrend that presents a buying opportunity to the market participants.
The 200-period Exponential Moving Average (EMA) at $1,776.76 has acted as major support for the counter.
Gold hourly chart
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.
Recommended content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.