- Gold price is expected to decline further to near $1,740.00 as the risk-off profile is gaining more traction.
- The DXY has refreshed its weekly high at 107.40 and has not displayed any sign of exhaustion yet.
- An upbeat US Durable Goods Orders data will create more troubles for Fed policymakers.
Gold price (XAUUSD) has turned sideways after dropping to near $1,743.00 in the early European session. The precious metal witnessed selling pressure after surrendering the crucial support of $1,750.00 as the risk aversion theme was underpinned by the market participants. The absence of potential triggers indicates that weekly anxiety is impacting risk-sensitive assets.
The US dollar index (DXY) has refreshed its weekly high at 107.40 and has not displayed any sign of exhaustion yet. Meanwhile, the 10-year US Treasury yields have tumbled to near 3.79% as investors don’t see a continuation of bigger rate hikes by the Federal Reserve (Fed) ahead.
This week, the ultimate event will be the release of the US Durable Goods Orders data, which is due on Wednesday. The economic data is expected to expand by 0.4%, similar to the prior advancement. Fed chair Jerome Powell is going through sleepless nights deriving a strategic plan to trim consumer spending. An absence of a decline in Durable Goods Orders data won’t be able to compel manufacturers to trim the prices of end goods. This might weigh more pressure on the gold prices ahead.
Gold technical analysis
Gold price has witnessed a steep fall after a breakdown of the Head and Shoulder chart pattern on an hourly scale. The precious metal has dropped to near the 200-period Exponential Moving Average (EMA) around $1,744.50, therefore a decisive move is expected ahead.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates that the downside momentum has been triggered.
Gold hourly chart
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 bounces off lows, back near 1.1330
EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.
GBP/USD eases from tops, revisits the 1.3500 zone
GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.
Gold keeps the bullish tone near $3,350
Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.
Apple stock sinks below $200 after Trump threatens more tariffs Premium
Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.
Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.