- Gold price fades bounce off 29-month low amid risk-aversion.
- GBP/USD slump, hawkish Fedspeak and Russia-inspired geopolitical fears weigh on prices.
- Sustained trading below the monthly pivot, middle Bollinger Band keeps sellers hopeful.
Gold price (XAU/USD) drops back towards the recently flashed two-year low near $1,626 as sour sentiment joins hawkish Fedspeak to propel the US Dollar Index. While Russia-linked geopolitical concerns are the headline challenge to the market, the recent slump in the multiple currencies versus the US dollar, especially the British Pound (GBP), also adds to the risk-off mood. Furthermore, firmer US PMIs and hawkish Fedspeak are the extra catalysts that favor the US dollar bulls and weigh on the bullion prices of late. However, this week’s speech from Fed Chairman Jerome Powell will be crucial for clear directions as traders sense a pullback in the greenback.
Also read: Gold Price Forecast: XAU/USD seems vulnerable to test sub-$1,600 levels
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price remains comfortably below the $1,645 support-turned-resistance confluence comprising the middle band of the hourly Bollinger and the pivot point one month S2.
That said, the previous day’s low and the SMA10 on 1H guards the quote’s immediate upside near the $1,640 mark.
It should also be noted that multiple hurdles beyond $1,645 could challenge the XAU/USD bulls. Among them, a convergence of the Fibonacci 38.2% on one-day and SMA10 on 4H offers a strong resistance near $1,655.
On the contrary, the pivot point one-day S1 joins the lower band of the hourly Bollinger to highlight $1,631 as the immediate support.
Following that, the previous low 4H joins the pivot point one week S1 constituting $1,627 as the key support.
Overall, gold is likely to remain weak unless staying successfully beyond $1,645.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.
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
NZD/USD picks up fresh bids above 0.6000 after RBNZ's expected hold
NZD/USD catches minor bids above 0.6000 in Wednesday's Asian trading, helped by the Reserve Bank of New Zealand's (RBNZ) expected interest rate-on hold decision following the July meeting. The Kiwi central bank opted to stand pat amid heightened global uncertainty over Trump's protectionism.
AUD/USD regains traction above 0.6500 after mixed Chinese inflation data
AUD/USD regains traction above 0.6500 early Wednesday, despite the mixed Chinese inflation data. The pair looks to resume the RBA's surprise on-hold decision-led uptick while Trump's planned tariffs on Copper could act as a headwind for the resources-linked Aussie. All eyes remain on trade talks and Fed Minutes.
Gold price consolidates around $3,300; looks to FOMC minutes for fresh impetus
The gold price holds steady above the $3,300 mark, albeit remaining close to a one-week low touched on Tuesday amid bets that threats to inflation from tariffs could force the Fed to hold off cutting interest rates. This acts as a tailwind for the USD and seems to undermine demand for the non-yielding yellow metal.
Cronos surges 20% on inclusion in Trump Media's Blue Chip ETF
Crypto.com's native token Cronos saw double-digit gains on Tuesday following Trump Media and Technology Group's filing with the Securities & Exchange Commission to launch a Blue Chip exchange-traded fund.
New US tariffs target Asia, but some countries stand to gain
President Trump’s new tariffs are higher than expected for most Asian economies. Moreover, most countries will face additional tariff rates on transshipments. The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably.
Best Brokers for EUR/USD Trading
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.