Gold Price News and Forecast: XAU/USD sellers eye $1,905 support confluence

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD looks north amid US political woes, Georgia’s Blue sweep – Confluence Detector

Gold (XAU/USD) attempts a bounce after Wednesday’s 2% slide, fuelled by the rally in US Treasury yields and stocks. Prospects of additional US stimulus amid a likely Blue sweep in the Senate revived the reflationary trades and drove the US rates sharply higher while Wall Street to fresh record highs.

Despite the sell-off in gold, the risks remain tilted to the upside amid expectations of more stimulus and growing US political tensions after the attack on Capitol Hill late Wednesday.

Gold Price Analysis: XAU/USD sellers eye $1,905 support confluence

Having flashed biggest losses in over a month, gold fails to consolidate as it drops to $1,917.75, down 0.08% intraday, during early Thursday. The yellow metal took a U-turn from a short-term falling resistance line the previous day and hence the sellers are looking for further favors.

As a result, a confluence of 10-day SMA and an ascending trend line from December 01, 2020, around $1,905, gains the market attention amid normal RSI conditions.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

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Gold extends slump below $4,300 on broad US Dollar demand

Gold fell through $4,300 on Monday, as demand for the US Dollar surged ahead of the Federal Reserve's monetary policy decision this Wednesday. Increased bets for an interest rate hike lead the way up.

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.