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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.