• XAU/USD rallies above $1,780 on a higher than expected US CPI reading.
  • Fed policymakers across the wires agreed to begin the bond taper by the FOMC November meeting.
  • Silver rises in tandem with gold, almost 3% in the day.

Gold (XAU/USD) surges during the New York session, trading at $1,793, up almost 1.86% at the time of writing. Factors like the August US higher inflation reading with its Core component, rising 0.2% (MoM), the ongoing energy crunch in Europe and Asia, and falling US 10-year Treasury yield boosts the non-yielding metal.

Furthermore, on Tuesday, Federal Reserve members, across the wires, expressed that they would like to start the QE’s reduction by the November meeting, propelling investors towards safe-haven assets like gold and silver (XAG/USD), which is advancing almost 3%, around $23.20.

The market sentiment is mixed as depicted by European equity indexes rise between 0.12% and  0.55%, while across the pond, more significant stock indices fall between 0.21% and 0.48%, except for the tech-heavy Nasdaq Composite, which is rising 0.42%.

The US Dollar Index that tracks the greenback’s performance against a basket of peers is down 0.28%, sits at 94.25, underpinned by the slump in the US T-bond 10-year benchmark note rate slumping four basis points to sit at 1.533%, lifting the prospects of higher yellow-metal prices.

US Consumer Price Index rose above 5.4%, a tick higher than expected

Data-wise, the US Bureau of Labor Statistics (BLS) released inflationary numbers for August. The Consumer Price Index increased by 5.4%, higher than the 5.3%, whereas the Core Consumer Price Index, which excludes food and energy prices, remained unchanged at 4%, both readings on an annual basis.

Later on, the Federal Reserve will unveil the last FOMC meeting minutes at 18:00 GMT.

XAU/USD Price Forecast: Technical outlook

Daily chart

Gold (XAU/USD) tests the 200-day moving average (DMA) at around $1,799. A daily close above the latter would change the downward bias in the non-yielding metal, as the 200-DMA is the barometer of a long-term trade in the financial markets. But, besides the 200-DMA, the 100-DMA and a downward slope trendline could exert intense selling pressure around the $1,795 - $1,805 area. 

For XAU/USD buyers, a daily close above that zone could pave the way for further gains. The first supply level would be the September 3 high at $1,833. A breach above that level could expose the June 11 high at $1,902.

Momentum indicators like the Relative Strength Index (RSI) is at 59, is aiming aggressively to the upside, suggesting that gold is under intense buying pressure as it remains below oversold levels.

XAU/USD KEY ADDITIONAL LEVELS TO WATCH

XAU/USD

Overview
Today last price 1792.85
Today Daily Change 32.75
Today Daily Change % 1.86
Today daily open 1760.1
 
Trends
Daily SMA20 1757.55
Daily SMA50 1777.36
Daily SMA100 1801.34
Daily SMA200 1797.57
 
Levels
Previous Daily High 1769.41
Previous Daily Low 1750.81
Previous Weekly High 1781.38
Previous Weekly Low 1746.07
Previous Monthly High 1834.02
Previous Monthly Low 1721.71
Daily Fibonacci 38.2% 1762.3
Daily Fibonacci 61.8% 1757.92
Daily Pivot Point S1 1750.8
Daily Pivot Point S2 1741.51
Daily Pivot Point S3 1732.2
Daily Pivot Point R1 1769.4
Daily Pivot Point R2 1778.71
Daily Pivot Point R3 1788

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD: Upside stalls below 1.3500 after weak UK Retail Sales data

GBP/USD: Upside stalls below 1.3500 after weak UK Retail Sales data

GBP/USD pares gains while trading under 1.3500 in European trading on Friday. The pair stalls its upside after the Pound Sterling faces headwinds from the downbeat UK Retail Sales data for May. Broad US Dollar weakness, amid easing Middle East tensions, keeps the major underpinned. 

EUR/USD holds firm above 1.1500 amid US Dollar pullback

EUR/USD holds firm above 1.1500 amid US Dollar pullback

EUR/USD continues its winning streak for the third successive day, holding firm above 1.1500 in the European session on Friday. The pair stands tall as the US Dollar loses ground, possibly driven by a technical pullback and receding fears over a likely US military attack on Iran. Geopolitics remain in focus. 

Gold price drops to over one-week low as Fed’s hawkish stance offsets Middle East tensions

Gold price drops to over one-week low as Fed’s hawkish stance offsets Middle East tensions

Gold price comes under renewed selling pressure despite a combination of supporting factors. A weaker risk tone and some follow-through USD selling do little to support the XAU/USD pair. The mixed fundamental backdrop warrants some caution before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate as traders await Trump’s decision

Bitcoin, Ethereum and Ripple consolidate as traders await Trump’s decision

Bitcoin price is hovering above the key support level on Friday; a breach below this level could trigger a sharp decline. Ethereum and Ripple followed BTC’s footsteps and stabilized around their crucial levels, with a failure below their support levels indicating a potential correction ahead.

In the Eurozone, inflation is also a monetary phenomenon

In the Eurozone, inflation is also a monetary phenomenon

Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant. 

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025