• Gold Price gained some traction on Thursday and snapped a three-day losing streak to the YTD low.
  • Modest USD pullback from a 20-year high was seen as a key factor that benefitted the commodity.
  • Fed rate hike bets, rebounding US bond yields and a positive risk tone might cap any further gains.

Gold Price edged higher on Thursday and for now, seems to have snapped a three-day losing streak to its lowest level since September 2021, around the $1,732 area touched overnight. The XAUUSD held on to its modest recovery gains through the first half of the European session and was last seen trading near the $1,744-$1,745 region.

The US dollar witnessed some profit-taking which, in turn, was seen as a key factor that offered some support to the dollar-denominated gold. The attempted recovery, however, lacked bullish conviction and runs the risk of fizzling out quickly amid hawkish Fed expectations.

The markets seem convinced that the Fed would retain its aggressive policy tightening path to combat stubbornly high inflation. The bets were reaffirmed by the unsurprisingly hawkish minutes of the June 14-15 FOMC meeting, where policymakers emphasized the need to fight inflation even if it results in an economic slowdown.

Policymakers indicated that another 50 or 75 bps rate hike is likely at the July meeting. This, along with some follow-through recovery in the US Treasury bond yields, should act as a tailwind for the USD. Apart from this, a positive risk tone might further contribute to capping any meaningful upside for the safe-haven gold.

The fundamental backdrop still seems tilted firmly in favour of bearish traders and supports prospects for the emergence of fresh selling at higher levels. Hence, it would be prudent to wait for strong follow-through buying before confirming that Gold Price have formed a near-term bottom and positioning for any meaningful gains.

Market participants now look forward to the US Weekly Initial Jobless Claims, due later during the early North American session. This, along with Fed Governor Christopher Waller and St. Louis Fed President James Bullard's scheduled speeches, will influence the USD price dynamics and produce short-term opportunities around gold.

Technical levels to watch

XAU/USD

Overview
Today last price 1743.37
Today Daily Change 4.51
Today Daily Change % 0.26
Today daily open 1738.86
 
Trends
Daily SMA20 1821.18
Daily SMA50 1839.92
Daily SMA100 1888.8
Daily SMA200 1845.84
 
Levels
Previous Daily High 1772.97
Previous Daily Low 1732.27
Previous Weekly High 1841.05
Previous Weekly Low 1784.55
Previous Monthly High 1879.26
Previous Monthly Low 1802.79
Daily Fibonacci 38.2% 1747.82
Daily Fibonacci 61.8% 1757.42
Daily Pivot Point S1 1723.1
Daily Pivot Point S2 1707.33
Daily Pivot Point S3 1682.4
Daily Pivot Point R1 1763.8
Daily Pivot Point R2 1788.73
Daily Pivot Point R3 1804.5

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0200 after US data

EUR/USD steadies near 1.0200 after US data

EUR/USD has managed to erase a small portion of its daily losses in the early American session after the NY Fed Empire State Manufacturing Index missed the market expectation by a wide margin. The pair, however, stays deep in negative territory near 1.0200 amid risk aversion.

EUR/USD News

GBP/USD struggles to recover above 1.2100

GBP/USD struggles to recover above 1.2100

After suffering heavy losses and declining below 1.2100 in the European morning on Monday, GBP/USD has failed to stage a convincing recovery. The US Dollar Index clings to strong daily gains despite edging lower with the initial reaction to disappointing US data.

GBP/USD News

Gold rebounds from weekly lows, fails to gather momentum

Gold rebounds from weekly lows, fails to gather momentum

Revived concerns over a global economic slowdown weighed heavily on gold at the beginning of the week and XAU/USD touched its lowest level in a week at $1,773 before recovering modestly toward $1,780. Falling US T-bond yields limit gold's downside for the time being.

Gold News

Three signs that XRP is a hot buy as Ripple bags another win against SEC

Three signs that XRP is a hot buy as Ripple bags another win against SEC

In the SEC v. Ripple case, the payment giant is set to serve subpoenas and authenticate videos of SEC officials’ public remarks. This evidence could make or break Ripple’s defense against the SEC.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures