• Gold fades bounce off weekly low, takes offers to refresh intraday low.
  • Market sentiment dwindles after Fed’s Powell defends current monetary policy outlook.
  • Yields remain pressured, stock futures print mild losses amid lack of clarity.
  • Powell’s Testimony 2.0, US PMIs for June will be important to watch for fresh impulse.

Gold Price (XAU/USD) remains on the back foot, reversing the previous day’s rebound from the weekly low, as traders await fresh clues during Thursday’s Asian session. That said, the yellow metal renews intraday low around $1,835 by the press time.

Earlier in the day, Reuters said, “An early look at the state of the US job market in June from payroll provider UKG suggests some strengthening, even as the Federal Reserve lifts interest rates sharply and economists raise alarms over the likelihood of a recession.” The news seems to have exerted fresh downside pressure on gold prices. Furthermore, Reuters poll suggesting that the European Central Bank (ECB) will raise benchmark rate to 0.75%, from 0.0% currently, also weigh on the market's mood and gold prices.

That said, the precious metal’s latest losses could also be linked to the market’s reassessment of Fed Chair Jerome Powell’s Testimony on the bi-annual Monetary Policy Report, which took place on Wednesday. Federal Reserve (Fed) Chairman Jerome Powell’s justification for the recent rate hike, the biggest since 1994, managed to gain acceptance, at least during the first round of the Testimony on the bi-annual Monetary Policy Report. However, Powell’s rejection of the need for a heavy rate increase seemed to have favored the risk appetite and gold prices afterward, before the latest weakness.

On a different page, easing fears of aggressive central bank moves, mainly due to a reduction in the oil prices and recently downbeat US data, could also be linked to the XAU/USD’s previous rebound. That said, WTI crude oil prices dropped 0.85% to $103.50, down for the second consecutive day around the lowest levels in six weeks. The black gold’s latest weakness could be linked to the bearish weekly inventory data from the American Petroleum Institute (API). Additionally, talks that US President Joe Biden will announce gas tax relief by the end of the week also weighed on the oil prices.

Furthermore, the latest US figures concerning housing and activities have been softer for May, which in turn eases the pressure on the Fed to tame inflation.

Amid these plays, Wall Street managed to pare the day-start losses but ended Wednesday with mild losses whereas the US 10-year Treasury yields marked the biggest daily fall in a week by ending the day at around 3.16%, down two basis points near 3.14% by the press time. That said, the S&P 500 Futures drop 0.50% at the latest.

Looking forward, US S&P Global PMIs for June and the weekly Jobless Claims data will precede the second round of Fed Chair Jerome Powell’s Testimony to direct short-term gold price moves.

Technical analysis

Gold extends pullback from an eight-day-old resistance line as sellers attack the key HMAs.

Given the RSI retreat from the overbought territory backing the metal’s latest weakness, the XAU/USD prices may decline below the immediate HMA confluence surrounding $1,835.

However, an upward sloping support line from June 14, near $1,825 by the press time, could challenge the quote’s short-term downside.

On the contrary, recovery moves need to cross the one-week-old trend line resistance, close to $1,848 at the latest, to recall the gold buyers.

Gold: Hourly chart

Trend: Further weakness expected

Additional important levels

Today last price 1835.58
Today Daily Change -2.16
Today Daily Change % -0.12%
Today daily open 1837.74
Daily SMA20 1844.76
Daily SMA50 1867.33
Daily SMA100 1891.58
Daily SMA200 1843.58
Previous Daily High 1847.95
Previous Daily Low 1823.43
Previous Weekly High 1879.26
Previous Weekly Low 1805.11
Previous Monthly High 1909.83
Previous Monthly Low 1786.94
Daily Fibonacci 38.2% 1838.58
Daily Fibonacci 61.8% 1832.8
Daily Pivot Point S1 1824.8
Daily Pivot Point S2 1811.85
Daily Pivot Point S3 1800.28
Daily Pivot Point R1 1849.32
Daily Pivot Point R2 1860.89
Daily Pivot Point R3 1873.84



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 rebounds, steadies above 1.0400

EUR/USD rebounds, steadies above 1.0400

EUR/USD has staged a rebound and reclaimed 1.0400 during the American trading hours on Friday with the US Dollar Index retreating from the multi-week high it set at above 105.60. Nevertheless, the pair remains on track to close the week in negative territory. 


GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD climbs to 1.2050 area, looks to post weekly losses

GBP/USD reversed its direction and advanced to the 1.2050 area after having dropped to 1.1976 earlier in the day. The pair is still down more than 1% on the day with safe-haven flows dominating the financial markets following the disappointing PMI data from the US.


Gold rebounds above $1,800 as US yields fall sharply

Gold rebounds above $1,800 as US yields fall sharply

Gold has regained its traction and recovered above $1,800 after having slumped to a multi-month low below $1,790. Following the dismal PMI data from the US, the benchmark 10-year US Treasury bond yield is down more than 6% on the day, fueling XAU/USD's rebound.

Gold News

Why traders are rushing to exit positions on Cardano’s ADA price

Why traders are rushing to exit positions on Cardano’s ADA price

Cardano (ADA) price has had its performance review as the summer kicks off. ADA bulls are returning home with not-that-good a scorecard, and the underperformance could cut short holiday funding for the cryptocurrency.

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!