Gold Price News and Forecast: XAU/USD down 0.45%, but losses could be short-lived

FXStreet Team FXStreet

Gold Price Forecast: Wednesday’s close above $1950 keeps bulls alive ahead of Powell

Gold (XAU/USD) closed above $1950 on Wednesday, having staged a solid comeback from just above the $1900 mark. The yellow metal fell sharply to fresh weekly lows of $1903 after the US Durable Goods data surprised to the upside. The spot gained 1.27% on the day, as the US dollar eventually slipped across the board in tandem the Treasury yields amid dovish expectations from the Federal Reserve (Fed) Chair Jerome Powell’s speech (due at 1310 GMT) at the Jackson Hole Symposium. Powell is expected to deliver a dovish tweak to its monetary policy by hinting at adopting average inflation targeting (AIT) next month. The new framework is mainly aimed to push up inflation, which could exert additional downside pressure on the greenback. The US stocks hit another record high, which hurt the haven demand for the dollar and boosted gold prices.

Gold Price Analysis: XAU/USD down 0.45%, but losses could be short-lived

Gold is trading near $1,945 per ounce, representing a 0.45% decline on the day. The losses could be reversed during the day ahead as the daily chart is reporting a bullish reversal pattern.

The metal first created a Doji candle on Tuesday, indicating indecision in the marketplace and then carved out a long-tailed bullish engulfing candle on Wednesday. In other words, the market has gone from being indecisive to bullish. As such, the hourly chart resistance at $1,962 could come into play. Acceptance above that level would open the doors for $2,000.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.