- Gold price has witnessed a sheer upside to near $1,723.30 on lower consensus for US ISM Services PMI.
- The DXY has slipped below 109.50 as the market mood has turned positive.
- The US ISM Services PMI is seen lower at 55.5 vs. 56.7.
Gold price (XAU/USD) has displayed a vertical upside after overstepping the critical hurdle of $1,718.00 in the Asian session. The precious metal has delivered an upside break of the consolidation formed in a narrow range of $1,708.82-1,718.15 and is expected to display more upside ahead. The yellow metal has picked significant bids amid lower consensus for US ISM Services PMI data.
The US ISM Services PMI data is lower than 55.5 against the prior release of 56.7. Also, the forward-looking Services New Orders Index is expected to remain subdued at 59.5 vs. 59.9. The consequences of adopting sheer pace in hiking interest rates by the Federal Reserve (Fed) are visible in the service sector. Also, the big tech boys have already halted their recruitment process ahead of a decline in economic activities.
Meanwhile, the US dollar index (DXY) has witnessed a steep fall at the open as the risk-off market mood is fading away. Risk-perceived currencies are gaining a lot of traction after turning extremely oversold as the fundamentals are still fragile. It is worth noting that US markets will open today after an extended weekend, therefore, higher volatility cannot be ruled out.
Gold technical analysis
Gold prices have poked the 200-period Exponential Moving Average (EMA) at $1,723.60 after witnessing a perpendicular upside move. The precious metal has also broken a small Symmetrical Triangle in a narrow range of $1,707.74-1,717.76.
The Relative Strength Index (RSI) (14) has stepped into the bullish range of 60.00-80.00, activating bulls for upside momentum.
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 stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.