- Gold Price pares weekly gains with mild losses as it snaps two-day uptrend.
- Global markets remain sidelined amid pre-GDP anxiety, mixed concerns surrounding Fed.
- Light calendar, off in China add to the market’s inaction and probe XAU/USD traders.
Gold price (XAU/USD) prints mild losses around $1,930 as it consolidates the gains marked during the last six consecutive weeks. That said, sluggish markets on early Wednesday join the cautious mood ahead of the key US data/events, as well as technical formation, to tease the XAU/USD sellers after rising in the last two days in a row.
US Treasury bond yields portray the market’s inaction as Tuesday’s US activity numbers showed improvement for January but marked the seventh consecutive contraction in PMIs and kept the recession fears on the table.
Elsewhere, hawkish comments from the European Central Bank (ECB) officials ahead of the next week’s monetary policy contrasts with the market’s receding bets on the aggressive Fed rate hikes to confuse traders. “Fed fund futures see only two more quarter-point rate hikes by the Fed to a peak of around 5% by June, before it starts cutting rates later in the year. The Federal Reserve itself has insisted it still has 75 bps of increases in the pipeline,” said Reuters.
It’s worth observing that the strong inflation data in Australia and New Zealand earlier in the day also weighed on the Gold price amid fears of aggressive rate hikes from the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ).
Against this backdrop, the S&P 500 Futures print mild losses but the stocks in the Asia-Pacific region trade mixed and support the currencies of the zone.
Moving on, Gold traders may witness sluggish moves and can pare recent gains ahead of Thursday’s US data dump comprising the monthly Durable Goods Orders, weekly Jobless Claims and the preliminary readings of the Q4 GDP. Above all, the next week’s Federal Open Market Committee (FOMC) meeting is the most important event for the XAU/USD traders to watch for clear directions.
Gold price: Technical analysis
Gold price takes a U-turn from the one-week-old ascending resistance line, around $1,942 by the press time, which in turn takes clues from the overbought RSI and looming bears on the MACD to keep sellers hopeful.
However, the 10-DMA support level surrounding $1,920 restricts the immediate downside of the Gold price.
Should the bright metal remains weak past $1,920, the previous weekly bottom near $1,896 could act as the last defense of the Gold buyers.
On the flip side, Gold’s successful trading above the adjacent resistance line, close to $1,942 at the latest, could propel the quote toward an ascending trend line from December 13, 2022, close to $1,962.
It should be noted that March 2022 peak near $1,966 could act as an extra filter to the north before highlighting the $2,000 psychological magnet.
Gold price: Daily chart
Trend: Pullback expected
Additional important levels
|Today last price||1932.26|
|Today Daily Change||-5.69|
|Today Daily Change %||-0.29%|
|Today daily open||1937.95|
|Previous Daily High||1942.57|
|Previous Daily Low||1917.19|
|Previous Weekly High||1937.57|
|Previous Weekly Low||1896.63|
|Previous Monthly High||1833.38|
|Previous Monthly Low||1765.89|
|Daily Fibonacci 38.2%||1932.87|
|Daily Fibonacci 61.8%||1926.89|
|Daily Pivot Point S1||1922.57|
|Daily Pivot Point S2||1907.19|
|Daily Pivot Point S3||1897.19|
|Daily Pivot Point R1||1947.95|
|Daily Pivot Point R2||1957.95|
|Daily Pivot Point R3||1973.33|
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.