Gold Price News and Forecast: XAU/USD regains traction, tests $1,740

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD eyes $1716 downside target ahead of US CPI – Confluence Detector

Gold (XAU/USD) has reversed the early bounce and resumes the two-day decline, as Treasury yields regain upside momentum amid rising inflation expectations. The renewed uptick in the yields strengthened the recovery in the US dollar, as all eyes remain on the critical US CPI release for March.

Gold’s fate will hinge on the US inflation numbers, as it will offer fresh insights on the strength of the economic recovery and the Fed’s monetary policy outlook. Read more...

Gold Price Analysis: XAU/USD regains traction, tests $1,740

The XAU/USD pair dropped to a daily low $1,723 in the early European session but made a sharp U-turn in the last hour. Boosted by a renewed selling pressure surrounding the greenback after the inflation data, gold climbed into the positive territory and was last seen gaining 0.3% on the day at $1,738.

The Relative Strength Index (RSI) indicator on the four-hour chart rose above 50 with the latest upsurge, suggesting that the bullish momentum is gathering strength. On the upside, the first hurdle is aligned at $1,740 (Fibonacci 23.6% retracement of Mar. 31 - Apr. 8 rally) ahead of $1,745 (static level). A daily close above the latter could open the door for additional gains toward $1,755, where the 50-day SMA is located. Read more...

Gold Futures: Further declines on the cards

Open interest in Gold futures markets increased by around 1.2K contracts on Monday, reversing the previous build according to preliminary readings from CME Group. Volume, instead, shrunk by around 47.1K contracts after two daily builds in a row.

Monday’s downtick in Gold prices was amidst rising open interest, allowing for the continuation of the recent weakness in the very near-term. That said, the $1,700 mark per ounce troy emerges as the next interim support. Read more...

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EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.