• Gold Price registers minuscule gains of 0.03%, around $1738.
  • Federal Reserve speaker begin to price a 50 bps increase to the Federal Funds rate.
  • The US Dollar edges lower, weighed by falling US Treasury bond yields.

Gold Price is almost flat on Tuesday’s North American session, capitalizing on a soft US Dollar (USD) still off the daily highs as Federal Reserve (Fed) officials continued to express the US central bank needs to tighten monetary conditions. Also, sentiment remains fragile due to Covid-19 cases in China. At the time of writing, the XAU/USD is trading at $1737.49, unchanged.

XAU/USD capitalize on weak US Dollar amid falling US bond yields

Sentiment improved throughout the day. Federal Reserve policymakers grabbed investors’ attention as the US central bank prepared to slow down borrowing costs. Loretta Mester, Cleveland Fed President, said, “Maintaining price stability is a critical objective that will be accomplished using all available means.” On Monday, Mester commented that she Is open to moderate rate hikes, though she emphasized that a pause is off the table. She echoed some of San Francisco Fed President Mary Daly’s comments, which added that the Federal Funds rate (FFR) needs to peak at around 5%.

In the meantime, Covid-19 cases in China peaked at around 28K on Monday, the most significant increase since April 2022. Beijing increased restrictions, and arrivals had to take three PCR tests within the first three days. Some schools switched to online learning, while some districts in Beijing asked citizens to stay at home for at least five days.

Elsewhere, the US Dollar Index (DXY), which tracks the greenback value against six currencies, slashes 0.50% down to 107.200. US Treasury yields are also dropping, led by the 10-year benchmark note rate yielding 3.750%, eight bps down compared to Monday’s close, a headwind for the greenback.

All that said, Gold trader’s focus turns to further Fed speaking, with Esther George and James Bullard crossing news wires, ahead of the release of the Federal Reserve Open Market Committee (FOMC) last meeting minutes.

Gold (XAU/USD) Price Analysis: Technical outlook

The XAU/USD daily chart portrays the yellow metal as neutral-biased. Even though the Gold Price sits above the 50 and 100-day Exponential Moving Averages (EMAs), four days of consecutive losses and failure to crack the 200-day EMA at $1801 exacerbated a fall toward current prices. Therefore, XAU/USD might consolidate in the $1730-50 range.

Upwards, the XAU/USD key resistance levels are $1750, followed by the November high of $1786.53 and $1800. On the flip side, the XAU/USD first support would be the August 22 swing low of $1727, followed by the $1700 figure.

XAU/USD

Overview
Today last price 1738.23
Today Daily Change -0.98
Today Daily Change % -0.06
Today daily open 1739.21
 
Trends
Daily SMA20 1702.09
Daily SMA50 1681.62
Daily SMA100 1711.91
Daily SMA200 1801.46
 
Levels
Previous Daily High 1753.06
Previous Daily Low 1732.61
Previous Weekly High 1786.55
Previous Weekly Low 1747.6
Previous Monthly High 1729.58
Previous Monthly Low 1617.35
Daily Fibonacci 38.2% 1740.42
Daily Fibonacci 61.8% 1745.25
Daily Pivot Point S1 1730.19
Daily Pivot Point S2 1721.18
Daily Pivot Point S3 1709.74
Daily Pivot Point R1 1750.64
Daily Pivot Point R2 1762.08
Daily Pivot Point R3 1771.09

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD: Further retracement targets the 200-day SMA

AUD/USD: Further retracement targets the 200-day SMA

The downward bias in AUD/USD remained unabated for yet another session on Tuesday, dragging spot to five-week lows and approaching the key 0.6600 neighbourhood.

AUD/USD News

EUR/USD remains vulnerable to extra pullbacks

EUR/USD remains vulnerable to extra pullbacks

EUR/USD retreated to multi-day lows and revisited the 1.0840 region on the back of the resumption of the buying interest in the greenback and ahead of key data releases due later in the week.

EUR/USD News

Gold reconquers $2,400, lacks directional momentum

Gold reconquers $2,400, lacks directional momentum

Gold stages a rebound and trades above $2,400 on Tuesday after closing the fourth consecutive trading day in negative territory on Monday. The pullback seen in US Treasury bond yields help XAU/USD cling to modest daily gains despite the US Dollar's resilience.

Gold News

Ripple stablecoin unlikely to invite legal trouble with SEC, XRP loses key support

Ripple stablecoin unlikely to invite legal trouble with SEC, XRP loses key support

Ripple (XRP), the native token of the XRP Ledger slipped under $0.60, a key psychological support for the altcoin. The two key market movers are the Securities & Exchange Commission’s (SEC) lawsuit against Ripple and the upcoming stablecoin RealUSD (RLUSD).

Read more

US S&P Global PMIs Preview: Economic expansion could struggle in July Premium

US S&P Global PMIs Preview: Economic expansion could struggle in July

On Wednesday, S&P Global will release advanced readings for the United States (US) Purchasing Managers Indexes (PMIs) for July, a monthly survey of business activity. The survey is anticipated to indicate that US economic activity in the private sector faced mixed trends during the current month.

Read more

Forex MAJORS

Cryptocurrencies

Signatures