Gold Price News and Forecast: XAU/USD eyes a daily close below 100-DMA

FXStreet Team FXStreet

Gold Price Forecast: Bears eye a daily close below 100-DMA amid dollar’s upsurge

Gold (XAU/USD) finally breached the August low of $1863 on Wednesday, as the sell-off continued amid persistent US dollar strength against its higher-yielding rivals. The yellow shed another 2% to reach the lowest levels in six weeks at $1856 before settling the day at $1863. Concerns over the economic recovery in the US and Europe resurfaced, amid intensifying second-wave of the coronavirus, which further fuelled the dollar’s demand as a safe-haven.

Fed's gospel choir off-key with markets

Gold's close below its August low at $1863.00 an ounce is significant, and it is now testing its overnight lows at $1855.00 an ounce. The 100-DMA nearby at $1843.00 an ounce should provide the same initial support as it did with silver. Both metals are now entering oversold territory on their technical indicators as well, also modestly supportive.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold bounces but not out of the woods yet

Gold is facing fresh sellers above $4,300 early Thursday, stalling its recovery from six-week lows of $4,235 reached soon after hawkish US Federal Reserve monetary policy announcements.

XRP and XLM rebound amid mixed signals

Ripple (XRP) and Stellar (XLM) extend their recovery at the time of writing on Thursday after finding support at key technical levels. However, mixed derivatives and on-chain data for both altcoins suggest that traders remain cautious and have yet to show strong conviction in a sustained rebound. Derivatives data shows a mixed and cautious outlook among traders.

BoE expected to hold interest rate at 3.75%

The Bank of England (BoE) is set to reveal its latest monetary policy decision on Thursday, coinciding with its sixth rate-setting meeting of 2026. Market analysts expect the central bank to keep its benchmark interest rate steady at 3.75%, which should be its sixth hold in a row following December’s 25-bps rate cut.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.