- Gold price has sensed selling pressure after encountering significant offers near $1,875.00.
- A topsy-turvy performance is expected from the USD Index ahead of Fed Powell’s speech.
- The battle between the Fed and higher inflation could get uglier amid a fresh rise in US employment data.
Gold price (XAU/USD) is facing pressures in recovery extension above the critical resistance of $1,875.00 in the Asian session. The precious metal has sensed selling interest as the US Dollar Index (DXY) has attempted a recovery after correcting to near 103.10. A topsy-turvy performance is expected from the USD Index as investors are awaiting the speech from Federal Reserve (Fed) chair Jerome Powell for fresh impetus.
The USD Index (DXY) was highly expected to demonstrate some volatility contraction signs after a three-day winning streak post mammoth United States Nonfarm Payrolls (NFP) data. The USD Index bulls have exhausted after a sheer ride, and the upside bias is still intact. S&P500 futures are holding minor gains recorded in the Asian session.
The speech from Fed chair Jerome Powell ahead has become significant amid a fresh rise in the employment numbers in the United States labor market. After observing a meaningful decline trend in inflation, the street started expecting a pause in the policy tightening spell by the Fed. However, the upbeat January employment data has conveyed that the battle against inflation has a lot of steam left.
Gold technical analysis
Gold price has gauged a cushion after refreshing its monthly low around $1,860.00 on a two-hour scale. The precious metal showed a perpendicular fall after delivering a breakdown of the Broadening Triangle chart pattern. Usually, a one-sided vertical fall reverses to the 20-period Exponential Moving Average gradually for further guidance, which is placed around $1,877.25, at the press time.
The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, still favors the bearish bias.
Gold two-hour chart
|Today last price||1872.3|
|Today Daily Change||3.80|
|Today Daily Change %||0.20|
|Today daily open||1868.5|
|Previous Daily High||1881.39|
|Previous Daily Low||1860.3|
|Previous Weekly High||1959.8|
|Previous Weekly Low||1861.45|
|Previous Monthly High||1949.27|
|Previous Monthly Low||1823.76|
|Daily Fibonacci 38.2%||1873.33|
|Daily Fibonacci 61.8%||1868.36|
|Daily Pivot Point S1||1858.74|
|Daily Pivot Point S2||1848.97|
|Daily Pivot Point S3||1837.65|
|Daily Pivot Point R1||1879.83|
|Daily Pivot Point R2||1891.15|
|Daily Pivot Point R3||1900.92|
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.
Follow us on Telegram
Stay updated of all the news
AUD/USD tumbles to breach 0.6500 as poor China's PMI offsets upbeat Aussie data
AUD/USD is seeing intense selling pressure and breaches 0.6500 after the Chinese NBS Manufacturing PMI sank further into contraction in May. Investors shrugged off hot Australian inflation data and strong Construction Work figures amid resurfacing China economic worries.
EUR/USD buyers flirt with resistance-turned-support near 1.0730
EUR/USD remains sidelined around 1.0730-35 as bulls seek more clues to extend the previous day’s recovery from a 10-week low amid Wednesday’s sluggish Asian session. The Euro pair portrays the market’s anxiety as the key European/US data and events stand ready to prod the market’s momentum.
Gold: Softer US Dollar underpins rebound, focus on US politics, employment data
Gold keeps the previous day’s corrective bounce off a short-term key support while making rounds to $1,960 amid Wednesday’s Asian session. The precious metal portrays the market’s sluggish mood ahead of the key United States data/events as XAU/USD bears run out of steam.
New SHIB investors bring deposits to the network but fail to trigger a rise in Shiba Inu price
Shiba Inu price is still facing consolidation after nearly a month of no major gains, and it seems like this might be the case for a while. Even though the network is observing bullish interest from new investors, the lack of bullishness from existing SHIB holders might act as a barrier to recovery.
Debt ceiling deal keeps dollar locked in devaluation spiral
Fiscal hawks weren't optimistic when Kevin McCarthy was elected Speaker of the U.S. House. The California Republican's track record was dismal when it comes to spending restraint. Nearly 5 months into his term, it is now apparent McCarthy has no intention of holding the line against government expansion.