Gold Price News and Forecast: XAU/USD battles 50-HMA on the road to recovery

FXStreet Team FXStreet

Precious Metal prices surge on U.S. stimulus deal: What’s next?

Precious metal prices surged on Monday – driven by news that U.S. lawmakers reached an agreement on a $900 billion aid package, while lockdowns in the United Kingdom soured appetite for riskier assets and added to safe-haven demand.

The $900 billion U.S stimulus deal is one of the largest economic relief bills US history, second only to the $2.2 trillion Cares Act in March of this year.

Last week, Gold and Silver prices skyrocketed following the FOMC’s final policy meeting of 2020, when Fed Chairman Jerome Powell “made it very clear that interest rates will remain near zero until 2024 and they are fully committed to pushing inflation higher”.

Gold Price Analysis: XAU/USD battles 50-HMA on the road to recovery

Gold (XAU/USD) witnessed good two-way businesses on Monday, as traders danced to the tune of the optimism on the agreement of a US stimulus deal in the first half of the day.

Meanwhile, in the latter part of the day, gold slumped nearly $50 from weekly tops of $1907 to $1855 levels on the narrative of a new covid strain found in the UK, which fuelled heavy risk aversion across the board and pumped the greenback against its major rivals.

AUD/USD struggles to recover as hawkish Fed bets escalate

The Australian Dollar is under pressure against the US Dollar as traders have raised bets supporting interest rate hikes by the Federal Reserve this year, with the AUD/USD pair posting a fresh almost eight-week low at around 0.7025. Hawkish Fed bets have accelerated following the release of the surprisingly strong United States Nonfarm Payroll (NFP) data for May.

USD/JPY holds higher ground toward 160.50 despite 'Yentervention' fears

USD/JPY holds higher ground toward 160.50 in Monday's Asian trading, despite intervention fears. Japan’s revised GDP print, which confirmed that the economy lost momentum in the first quarter, weighs on the Japanese Yen. Meanwhile, Friday's upbeat US NFP report and fresh Israel-Iran attacks favor the US Dollar bulls, underpinning the currency pair.

Gold regains some shine, focus is on $4,350

Gold manages to reclaim the $4,300 mark per troy ounce and above on Monday. The yellow metal’s small uptick comes on the back of modest losses in the US Dollar, while traders keep following geopolitical events in the Middle East and the likelihood of a tighter-for-longer Fed.

Solana: ETF outflows and bearish sentiment reinforce downside risks

Solana (SOL) remains under pressure, trading below $66 on Monday after losing nearly 20% in the previous week. Institutional demand weakened with spot Exchange Traded Funds recording a net outflow of over $6.5 million last week, snapping a four-week streak of inflows.

$1.75 trillion: Is SpaceX the most popular IPO in history, or the most engineered?

On June 12, the largest initial public offering (IPO) in history is set to hit the tape, and almost nobody is asking whether the price is right, because almost everybody already wants in.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.