Gold Price News and Forecast: XAU/USD corrrects to the 50% mean reversion target

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD corrrects to the 50% mean reversion target

Gold prices have corrected a significant portion of the latest bearish impulse. Failures at this resistance could lead to a fresh downside impulse. As per the prior analysis for the open on Monday, The Chart of the Week: Gold correcting towards critical resistance from fresh bear cycle lows, the price has corrected to the 50% mean reversion point of the latest bearish impulse.

Markets Outlook: Markets suffering from a case of “blues and twos”

Higher US yields continue to pressure gold, which remains mired in a downtrend that began in August, with gold ETF and futures speculative positioning both coming off from the top to about 80% of the last year's range. Technical trends kicked in when gold gapped down to $1,756.30 from $1,765/66, then triggered stop losses in a cascading effect as the rise in US bond yields triggering inflows into USD is the most forceful headwind for precious metals.

GBP/USD extends recovery, trades above 1.3200

GBP/USD holds on to modest gains above 1.3200 on Friday, building on gains seen in the previous day. Still, Cable struggles to build on its recovery as cautious market sentiment keeps investors focused on the US-Iran conflict and ongoing volatility in global technology stocks.

EUR/USD pops to daily highs near 1.1420

EUR/USD extends Thursday's recovery and climbs past the 1.1400 yardstick at the end of the week. The pair’s recovery comes as the US Dollar remains on the back foot, while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold advances to two-day highs, targets $4,100

Gold trades in a tight range above $4,000 per troy ounce on Friday, adding to the recent recovery. The precious metal, however, finds it difficult to attract fresh buyers as expectations for a hawkish Fed continue to strengthen.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.