Gold Price News and Forecast: XAU/USD - Looks to stabilize around $1550 after Fed-led wild ride

Ichimoku Cloud Analysis: XAU/USD, "Gold vs US Dollar"

XAUUSD is trading at 1541.00; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1555.00 and then resume moving downwards to reach 1435.00. Another signal to confirm further descending movement is the price's rebounding from the rising channel's downside border. Read more...

Gold Price Analysis: Looks to stabilize around $1550 after Fed-led wild ride

Having witnessed a volatile early Asian session, gold (futures on Comex) is stabilizing near the mid-1550s, as investors await fresh catalysts for the next direction in the prices.

The yellow-metal opened with a $45 bullish opening gap this Monday, as traders sold-off the greenback across its main competitors, responding to the surprise rate cut delivered by the US Federal Reserve (Fed) late Sunday.

The dollar sank in tandem with the US Treasury yields, as the demand for the US bonds rose, with markets unwilling to buy into the Fed rate cut decision that is said to cushion the blow of the coronavirus impact on the economy.

Gold, however, failed to sustain at higher levels and fell as low as $1524 to close the gap, as investors locked-in gain after the upsurge. The buyers re-emerged around the latter, prompting a recovery in the commodity towards $1550, as the broad US dollar rebound stalled. Read more...

Gold: USD1,900/oz in the medium term – ANZ

Gold’s safe haven status failed to materialise as the precious metal recorded its worst week since 1983 as prices collapsed after reaching a seven year high of just above USD1,700/oz, strategists at ANZ Research report.

Key quotes

“The selling was driven by a need to raise cash and cover losses in other markets, namely equities. A stronger USD over the past week also weighed on investor appetite.”  Read more...