- Gold holds negative tone intact amid higher US yields.
- The dollar remains strong after economic data from the US.
- FOMC minutes to be released later on Wednesday ahead of US holiday.
Gold dropped further and printed a fresh two-week low at $1778. It is hovering around $1780 after the release of US economic data, including the Core PCE.
A reversal of a hundred dollars
Gold prices are falling again on Wednesday for the fifth consecutive day. The recovery toward $1800 proved to be short-lived and XAU/USD turned back to the downside. Recently bottomed at $1778, a hundred dollar below last week’s top.
US economic data released on Wednesday came in from mixed to upbeat. Personal Income and Spending rose more than expected in October, initial jobless claims dropped to the lowest since 1969 and consumer sentiment rebounded modestly. On the negative front, Q3 GDP data was revised from 2.2% to 2.1%; Durable Goods Orders fell 0.5%, and New Home Sales rose to 745K (annual rate) below the 800K expected.
US yields remained near weekly highs after the numbers supporting the US dollar in the market and keeping XAU/USD under pressure. At 19:00 GMT the Federal Reserve will released the minutes of its latest meeting.
Short-term outlook
The negative outlook remains intact, particularly with prices breaking and consolidating below every support it recently broke. XAU/USD is back under key moving averages (20, 55, 100 and 200 days). Under $1780, the next support stands at $1770, before the November low at $1758. On the upside, a consolation above $1795, should provide more support for a recovery in prices, that should be seen as a corrective move.
Gold looks set to decline further as no signs of consolidation are seen yet. Although after falling during five consecutive days, technical indicators are showing extreme oversold readings.
Technical levels
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.