Gold Price News and Forecast: XAU/USD looking for an excuse to go higher

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD fails to scale 50-day SMA even as US inflation expectations rise

Gold, a proven store of value, struggles to gather upside traction despite the uptick in the US inflation expectations. The yellow metal is trading at $1,918 per ounce at press time, having faced rejection above the 50-day simple moving average (SMA) at $1,923 early Thursday. Similarly, the bulls failed to keep gains above the key SMA on Wednesday.

The US 5-year, 5-year forward inflation swap rose to 2.20% on Wednesday, the highest level since the second quarter of 2019. While inflation expectations are hovering well above the Federal Reserve's 2% target, the central bank is unlikely to raise rates anytime soon.

XAU/USD

Overview
Today last price	1913.48
Today Daily Change	-11.02
Today Daily Change %	-0.57
Today daily open	1924.5

Trends
Daily SMA20	1898.06
Daily SMA50	1924.95
Daily SMA100	1877.32
Daily SMA200	1758.41

Levels
Previous Daily High	1931.54
Previous Daily Low	1906.22
Previous Weekly High	1933.3
Previous Weekly Low	1882.46
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1921.87
Daily Fibonacci 61.8%	1915.89
Daily Pivot Point S1	1909.97
Daily Pivot Point S2	1895.43
Daily Pivot Point S3	1884.65
Daily Pivot Point R1	1935.29
Daily Pivot Point R2	1946.07
Daily Pivot Point R3	1960.61

Gold is looking for an excuse to go higher

And that excuse is the devaluation of the dollar. Gold is not immune to fundamental events. However, recently has been sideways for the most part of two months.

A theme revolving around Biden’s win is the dollar’s devaluation, with many banks calling a drop in the dollar if Biden is elected. Given the historical precedent of Gold rallying on dollar weakness, a Biden win may push the yellow metal higher. Furthermore, a sell-off in the equity markets on a Biden win may give Gold’s tailwinds as investors and traders switch to risk-off.

EUR/USD recovers above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.