- Gold price is declining towards $1960.00 as investors are getting anxious ahead of US PCE inflation data.
- The reputation of Gold as a safe-haven amid US banking jitters has ebbed.
- On a broader note, Gold price is auctioning in a Symmetrical Triangle chart pattern.
Gold price (XAU/USD) has dropped after failing to sustain above $1,970.00 in the Asian session. The precious metal has lost its appeal as fears of the United States banking crisis have receded significantly. The Gold price is expected to extend its correction further as the US Dollar Index (DXY) has shown a recovery move.
The USD Index has rebounded after building an intermediate cushion around 102.40. The USD Index has extended its recovery to near 102.60 as investors are shifting their focus to core Personal Consumption Expenditure (PCE) Price Index data, which is scheduled for Friday.
Federal Reserve’s (Fed) preferred inflation gauge is expected to accelerate by 0.4%, lower than the former expansion of 0.6%. The annual figure is expected to remain steady at 4.7%. A deceleration in the pace of consumer spending on core goods will further ease the chances of one more rate hike by the Fed. Chances are favoring a decline in consumer spending as labor cost index remained lower than anticipated. Also, US banks have tightened credit conditions for households and businesses after the collapse of three mid-size banks.
Meanwhile, S&P500 futures have generated firmer gains in the Asian session after a rangebound auction on Tuesday. US equities have been underpinned on hopes that the Federal Reserve (Fed) will keep rates steady ahead.
Gold technical analysis
Gold price has dropped after a pullback move to near the prior order block region placed in a range of $1,968-1,980 on an hourly scale. On a broader note, the precious metal is auctioning in a Symmetrical Triangle chart pattern. The Gold price is struggling in holding its auction above the 20-period Exponential Moving Average (EMA) at $1,968.00.
Meanwhile, the Relative Strength Index (RSI) (14) has failed in sustaining inside the bullish range of 60.00-80.00.
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 closes in on 1.0700 amid broad USD strength
EUR/USD came under renewed bearish pressure in the American session and dropped to its lowest level since late March near 1.0700. Stronger-than-forecast PCE inflation data and hawkish comments from Fed's Mester provide a boost to the US Dollar and weigh on the pair.
GBP/USD loses bullish momentum after US data, falls below 1.2350
GBP/USD has reversed its direction and erased a large portion of its daily gains on Friday after the data from the US showed that the annual core PCE inflation edged higher to 4.7% in April. Although the pair clings to small daily gains below 1.2350, it remains on track to end the third straight week in negative territory.
Gold erases daily gains, holds above $1,940
Gold price turned south and declined to the $1,940 area in the American session on Friday. The benchmark 10-year US Treasury bond yield holds stead above 3.8% after stronger-than-expected core PCE inflation data from the US, not allowing XAU/USD to gain traction.
Ethereum price to outpace Bitcoin price as ETH jumps over key hurdle where BTC fumbles
ETH is working on its recovery after it dipped to a two-week low on Thursday. While Bitcoin price has failed to make a similar move and head back above $26,500, Ethereum is outpacing Bitcoin and has been able to push above $1,800.
Ford Stock: New agreement will give customers access to 12,000 Tesla chargers
Ford (F) stock has advanced about 2.5% early Friday following CEO Chris Farley’s announcement that Ford owners will be able to charge their EVs at Tesla Superchargers beginning in early 2024.