Gold Price News and Forecast: XAU/USD bears keep reins below $1,900 amid US dollar strength

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD stalls within bull flag at weekly resistance

The price of gold is trading at $1,867.52, down some 0.5% on the day having travelled between $1,860.82 and $1,884.33.

Holiday-thin markets on a shortened week are making for unusual price behaviour across the spectrum of instruments, not least in the precious metals arena.

However, the US dollar is perky within its corrective phase within the fresh bearish cycle and despite the passage of a new $900 billion stimulus package.

Following weeks of negotiations, Congress overwhelmingly approved billions of dollars for American households and businesses that have been hurt by the pandemic.

Gold Price Analysis: XAU/USD bears keep reins below $1,900 amid US dollar strength

Gold prices hold lower ground near $1,860 amid the early Wednesday morning in Asia. The yellow metal dropped the most since December 09 amid broad US dollar strength. While the greenback benefited from the passage of the US coronavirus (COVID-19) aid package and broad risk-off mood, sentiment remains downbeat as Brexit deadlock prevails while markets worry from the fresh covid variant.

Although major market chatters blame risk-off for the latest surge in the US dollar index (DXY), other reasons also contribute to the greenback’s strength. Firstly, the passage of the US covid aid package and government funding with nearly $2.3 trillion amount in total suggest that the world’s largest economy will have a good start to 2021. Secondly, hopes that America will be in better shape under Joe Biden’s leadership also back the greenback. Additionally, other developed economies like Europe and the UK are jostling with Brexit whereas China has less acceptance in the West, which in turn direct market players towards the USD.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.