• After snapping two days of consecutive losses on Monday, the yellow metal remains on the backfoot and is down 0.13% on Tuesday.
  • The market mood remains positive, weighing on safe-haven peers and precious metals.
  • Gold Price Forecast (XAU/USD): Remains defensive and failure to register a daily close above $1820-25, a re-test of the YTD lows around $1780s, is on the cards.

Gold spot (XAU/USD) modestly slides after facing a solid resistance near the trend-setter 200-day moving average (DMA) at around $1837.57, which held nicely and pushed XAU/USD price towards the two-year-old upslope trendline around $1820-25 area, amidst a positive market mood and high US Treasury yields. At the time of writing, XAU/USD is trading at $1820.76 in the North American session.

The Covid-19 situation in Shanghai improves, lifts the market mood

Sentiment has improved, as Shanghai reported no Covid-19 cases for the third consecutive day and would begin easing restrictions gradually. Portraying the aforementioned are global equities trading in the green, despite Fed Chair Jerome Powell hitting the wires at around 18:00 GMT. Regarding geopolitics linked to the Ukraine-Russia war, hostilities remain while the Russian Foreign Ministry Lavrov added that there are no talks with Ukraine.

In the meantime, the US Dollar Index, a measurement of the greenback’s value vs. a basket of rivals, remains soft in the day and drops to a two-week low, at 103.481, down some 0.68%, despite higher US Treasury yields, led by the 10-year benchmark note at 2.949%, gaining six basis points, a headwind for the yellow metal.

Before Wall Street opened, the US economic docket featured Retail Sales for April, which showed the resilience of consumers. The figures came at 0.9% m/m, in line with expectations. While the annual based number came at 8.2% y/y, smashing the 4.2% estimations. Also, Industrial Production posted good numbers, beating monthly and yearly forecasts, further cementing the case of the Federal Reserve tightening monetary policy at the pace that began a couple of weeks ago.

Additionally to macroeconomic data, Fed speakers would continue in the day. Earlier, St. Louis Fed President James Bullard said that the continued strong growth trend for the US economy is the base case outlook for the next 18 months at least, and added that household consumption is expected to hold up well through this year. He emphasized that the base case scenario for the Fed is 50-bps rate hikes at upcoming Fed meetings.

Also read:

Gold Price Forecast (XAU/USD): Technical outlook

The price of gold remains downward pressured once XAU/USD broke below the 200-day moving average (DMA). Despite an earlier attempt to overcome the previously-mentioned DMA. Albeit XAU/USD remains defensive, it is trading around familiar ranges. However, faltering to record a daily close above the two-year-old upslope trendline around $1820-25 would open the door for further losses.

If gold bulls fail at $1820-25, XAU/USD’s first support would be $1800. Break below would expose the May 16 daily low at $1786.50, followed by the YTD low at $1780.18, and then December 15, 2021, daily low at $1752.35.

XAU/USD

Overview
Today last price 1820.76
Today Daily Change -1.78
Today Daily Change % -0.10
Today daily open 1824.16
 
Trends
Daily SMA20 1882.36
Daily SMA50 1923.91
Daily SMA100 1883.76
Daily SMA200 1836.32
 
Levels
Previous Daily High 1826.92
Previous Daily Low 1786.94
Previous Weekly High 1885.82
Previous Weekly Low 1799.19
Previous Monthly High 1998.43
Previous Monthly Low 1872.24
Daily Fibonacci 38.2% 1811.65
Daily Fibonacci 61.8% 1802.21
Daily Pivot Point S1 1798.43
Daily Pivot Point S2 1772.69
Daily Pivot Point S3 1758.45
Daily Pivot Point R1 1838.41
Daily Pivot Point R2 1852.65
Daily Pivot Point R3 1878.39

 

 

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 trades in negative territory below 1.0400 after US data

EUR/USD trades in negative territory below 1.0400 after US data

Following a short-lasting recovery attempt in the early trading hours of the American session, EUR/USD returned below 1.0400. The data from the US showed on Thursday that the Core PCE inflation edged lower to 4.7% in May from 4.9% in April.

EUR/USD News

GBP/USD jumps above $1,820 as US yields push lower

GBP/USD jumps above $1,820 as US yields push lower

Gold erased its daily losses and climbed into positive territory above $1,820 on Thursday. After the data from the US showed that the Core PCE inflation declined to 4.7% on a yearly basis in May, the 10-year US T-bond yield fell sharply, fueling XAU/USD's rally.

GBP/USD News

Gold stays on the back foot, retreats toward $1,800

Gold stays on the back foot, retreats toward $1,800

Gold has lost its traction and declined toward $1,800 following a consolidation phase in the early European session. Although the benchmark 10-year US Treasury bond yield is down more than 1%, the broad-based dollar strength weighs on XAU/USD. 

Gold News

Crypto winter to resume in Q3

Crypto winter to resume in Q3

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot yet again – their moves accelerated after a panel discussion that was held at Siyntra for the ECB yearly economic forum.

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!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures