- Wall Street futures trimmed Tuesday’s gains as optimism faded.
- The better performance of the US dollar undermines gold demand.
- Gold Price keeps hovering around a Fibonacci level at $1,925.00.
Gold Price picks up as US trades reach their desks, approaching a daily high of $1,936.04 a troy ounce. European indexes accelerated their decline, weighing on Wall Street, which has already trimmed most of its Tuesday’s gains.
Meanwhile, US government bonds paused their slides at the beginning of the day, pushing yields temporarily lower and limiting XAUUSD upside. Nevertheless, the yield on the US 10-year Treasury yield hit a fresh multi-year high of 2.417%, now down to 2.35%.
In the absence of relevant macroeconomic figures, financial markets rotate around the Russia-Ukraine crisis. Crude oil prices are once again on the run, following some comments coming from Moscow. President Vladimir Putin said that they intent to use Russian rouble when selling gas to “non-friendly” countries, clarifying that they will respect their contracts on supply. The barrel of WTI is currently changing hands at $113.65, its highest in two weeks. Higher oil prices provide unexpected support to Gold Price.
XAUUSD Technical Outlook
XAUUSD has spent the week hovering around a Fibonacci level, the 50% retracement of this year’s rally at $1,925.20. Movements away from the level have been shallow, although Gold Price bottomed the previous week near the next Fibonacci support level at $1,980.00, while intraday advances fell short of nearing the 38.2% retracement at $1,960.00. Market participants are looking for a clear break of any of those extremes for more sustained directional strength.
Technical readings in the daily chart suggest that Gold Price may come under further pressure, as it has been unable to move beyond a flat 20 DMA for over a week, meeting sellers around it. The same chart shows that technical indicators are directionless around their midlines, reflecting side-lined speculative interest.
From a fundamental perspective, however, XAUUSD has room to appreciate further and retest bears’ determination at around the $2,000 figure, while a break above the latter could result in a test of record highs in the $2,070 price zone.
|Today last price||1929.04|
|Today Daily Change||7.46|
|Today Daily Change %||0.39|
|Today daily open||1921.58|
|Previous Daily High||1938.52|
|Previous Daily Low||1910.83|
|Previous Weekly High||1990.22|
|Previous Weekly Low||1895.15|
|Previous Monthly High||1974.51|
|Previous Monthly Low||1788.67|
|Daily Fibonacci 38.2%||1921.41|
|Daily Fibonacci 61.8%||1927.94|
|Daily Pivot Point S1||1908.77|
|Daily Pivot Point S2||1895.95|
|Daily Pivot Point S3||1881.08|
|Daily Pivot Point R1||1936.46|
|Daily Pivot Point R2||1951.33|
|Daily Pivot Point R3||1964.15|
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.