Gold Price Analysis: XAU/USD licks wounds in the Fed aftermath, $1969 still in sight? – Confluence Detector
Gold (XAU/USD) attempts a tepid rebound after a Fed-driven rally in the US dollar gathered steam and downed the metal 1% this Thursday. The Fed offered an optimistic outlook on the economy but doused hopes of further stimulus amid expectations of a faster recovery in the jobs market and higher tolerance for inflation.
The not-so-dovish Fed outcome pushed the US Treasury yields higher and weighed on the stocks alongside the yieldless gold. Increased odds of a deal on the US fiscal relief package further collaborated with the downside in gold. Ahead of the US Jobless Claims data, let's see how it is positioned on the charts? Read more...
Gold keeps the red below $1950 level
Gold maintained its offered tone through the mid-European session and dropped to over one-week lows, around the $1937 region in the last hour, albeit quickly recovered a bit thereafter.
The previous metal witnessed some selling on Thursday and extended the previous day's post-FOMC retracement slide from two-week tops, around the $1974 region. The fact that the Fed gave no indications of additional stimulus turned out to be one of the key factors that undermined the non-yielding yellow metal. Read more...
Gold: 50-DMA support at $1932 is the level to beat for the bears
Despite the not-so-dovish Fed-induced gold's decline, gold managed to close the day in the green above $1950. The focus is now on the US fiscal stimulus talks and Initial Jobless Claims. Technically, XAU/USD finds solid support at the $1932 50-DMA support, as FXStreet's Dhwani Mehta notes.
Key quotes: "The world's most powerful central bank pledged to keep rates lower for longer while increasing tolerance for higher inflation. Fed's projection of faster recovery in the economy and jobs market pushed the Treasury yields higher alongside the dollar. Fresh hopes of the US Congress reaching a fiscal stimulus deal also underpinned the greenback." Read more...
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