- Gold price is aiming to recapture $1,880.00 as the risk appetite is improving.
- Investors have shrugged-off uncertainty from Powell’s speech and US Biden’s SOTU meeting.
- The Fed might continue keeping rates higher for a longer period as the entire disinflationary process seems complicated.
Gold price (XAU/USD) aims to capture the immediate resistance of $1,880.00 in the Asian session. The precious metal rebounded after dropping to near $1870.00 and is expected to add gains ahead as the risk appetite of the market participants is improving.
Investors have digested the hawkish guidance on interest rates delivered by Federal Reserve (Fed) chair Jerome Powell and US President Joe Biden’s commentary at State of the Union (SOTU).
Fed chair Jerome Powell cleared that the central bank will hike interest rates further if the labor market report continues to surprise the market on the upside. The Fed is committed to raising the inflation rate to 2%; therefore, higher interest rates will continue to stay longer.
Meanwhile, US President Joe Biden sounded tough on China, citing that “The United States is in strongest position from decades to compete with China or anyone else.”
Risk-perceived assets like S&P500 futures have ignored Powell’s hawkish commentary and US Biden’s harsh statement on China. They have recovered losses displayed in the Asian session, portraying a risk-on market mood. The US Dollar Index (DXY) is struggling to firm its feet and is expected to resume its downside journey. Also, the 10-year US Treasury yields have slipped to near 3.65%.
Gold technical analysis
Gold price is forming an Inverted Flag chart pattern on a four-hour scale, indicating a sheer consolidation, followed by a breakdown in the same. Usually, the consolidation phase of the chart pattern serves as an inventory adjustment in which those participants initiate shorts, which prefer to enter an auction after establishing a bearish bias.
The Gold price is also struggling to sustain above the 23.6% Fibonacci retracement (from November 11 low at $1,617.32 to February 2 high at $1,959.20) at $1,878.00.
The 20-period Exponential Moving Average (EMA) at $1,882.20 acts as a significant barricade for the Gold price.
Meanwhile, the Relative Strength Index (RSI) (14) is struggling to cross 40.00, which indicates an absence of strength in the Gold bulls.
Gold four-hour chart
|Today last price||1876.48|
|Today Daily Change||6.25|
|Today Daily Change %||0.33|
|Today daily open||1870.23|
|Previous Daily High||1884.49|
|Previous Daily Low||1865.05|
|Previous Weekly High||1959.8|
|Previous Weekly Low||1861.45|
|Previous Monthly High||1949.27|
|Previous Monthly Low||1823.76|
|Daily Fibonacci 38.2%||1877.06|
|Daily Fibonacci 61.8%||1872.48|
|Daily Pivot Point S1||1862.02|
|Daily Pivot Point S2||1853.82|
|Daily Pivot Point S3||1842.58|
|Daily Pivot Point R1||1881.46|
|Daily Pivot Point R2||1892.7|
|Daily Pivot Point R3||1900.9|
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
EUR/USD stays below 1.0900 after EU inflation data
EUR/USD stays on the back foot and trades below 1.0900 on Friday. The data published by Eurostat showed on Friday that the annual HICP declined to 6.9% in March from 8.5% in February, compared to the market expectation of 7.1%. Investors now await PCE inflation data from the US.
GBP/USD remains pressured below 1.2400 ahead of US PCE data
GBP/USD is trading below 1.2400, consolidating its retreat from two-month highs at 1.2423 in the European session. The pair is weighed down by the mixed UK economic data and the US Dollar comeback. Focus now remains on the US PCE data.
Gold stalls after Fed officials signal more hikes may be needed
Gold price (XAU/USD) stalls after early gains on Friday, exchanging hands in the $1,970-80 range in the European Session, after the release of poorer-than-expected US data provided the safe-haven with a bid.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
US February PCE Inflation Preview: Bad news for the Dollar, good news for the Fed? Premium
United States Core Personal Consumption Expenditures Price Index is expected to stay at 4.7% YoY. Easing inflation would be welcome news for the Fed, but not for Dollar bulls.