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 keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold moves away from one-week low, climbs above $4,450 as USD edges lower ahead of CPI

Gold builds on its modest intraday recovery from the $4,300 neighborhood, or a one-and-a-half-week low, touched earlier this Friday, and climbs above $4,350 heading into the European session. The upside potential, however, seems limited as traders opt to wait for the release of US consumer inflation figures before placing directional bets.

Cardano approaches critical support as correction risks grow

Cardano (ADA) recovers slightly, trading at $0.206 at the time of writing on Friday, inches above the critical support zone after losing more than 6% so far this week. Weakening derivatives data and fading bullish momentum suggest a bearish near-term outlook, with a decisive close below the support zone potentially triggering a deeper correction for ADA.

US core CPI data set to ease in August as markets reprice Fed September rate decision

The US Bureau of Labor Statistics will publish the August Consumer Price Index data on Friday. The report is expected to show a small decline in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.