Gold Price News and Forecast: XAU/USD has chopped either side of the $1800 level in recent trade


Gold Price Analysis: XAU/USD choppy either side of $1800 level as Fed Chair Powell’s testimony gets underway

Spot gold prices have been choppy in recent trade amid an uptick in trading volumes at the start of the US trading session and as Fed Chair Jerome Powell begins the first day of his semi-annual testimony to Congress. His statement to Congress was released last Friday and contained no surprises; markets are instead focused on anything he might have to say regarding recent moves in the US bond market when speaking off the cuff in the Q&P session. More specifically, real yields have surged as markets have brought forward their expectations for the Fed’s first-rate hike; a 70% chance is now assigned to the Fed hiking rates by the end of 2022, a challenge to the Fed’s current guidance which says there will be no hikes through 2023. Thus, Powell may want to push back on market pricing in some regard.

Read more...

Trading gold to the downside, stochastics on XAU/USD overbought

Yesterday we looked at gold from the fundamental standpoint and the market still sees downward pressure even though price has risen above $1800.

From the technical view, we see price at the upper trend line in this bearish run so we will wait for confirmation before going short.

For this, we can wait for a bounce or use another technical indicator like the Stochastic Oscillator which is now showing Overbought.

Read more...

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.21 amid sour market mood

EUR/USD has extended its falls and struggles around 1.21 as the risk-off mood and elevated US bond yields favor the dollar. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.

EUR/USD News

Gold melts below $1,750, lowest in 8 months amid high Treasury yields

Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.

Gold news

S&P 500 Day Ahead Outlook: Inflation fears see bears back bashing

An ugly day for stock markets on Thursday as the dirty word inflation reared its head again. Just when you thought Powell had killed off the thought, it came back stronger in the sequel!

Read more

Bitcoin ready for bullish continuation as crypto bull cycle pauses

Bitcoin retest support at $45,000 after failing to break the resistance at $52,000. A break above the range between $48,000 and $49,500 will bring back a bullish impulse.

Read more

US Dollar Index remains firm around 90.60 post-data

The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, keeps the bid tone unchanged around 90.60 on Friday.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures