Gold Price News and Forecast: XAU/USD started on the defensive

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March

Gold looks south, having breached the widely-tracked 100-day simple moving average (SMA) support for the first time since March 23. The yellow metal fell by 1.67% on Wednesday and closed below the 100-day SMA, flipping the long-term technical support into resistance. The SMA is currently located at $1,887, and the metal is trading at $1,878 per ounce.

Wednesday's drop also marked a downside break of the ascending channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.

Asia Market: Global markets tremble

Gold started on the defensive and racked up further losses. Initially, the USD was slightly firmer in response to Europe's falling equities on concerns over rising Covid-19 cases on both sides of the Atlantic. That seemed to provide a level of anxiety for gold investors. The bullion market is likely to be volatile until the elections; ultimately, the falls will be limited by easy global monetary policies.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold retakes $4,300 amid modest USD pullback but hawkish Fed caps upside

Gold climbs back above the $4,300 mark heading into the European session on Thursday, though it remains within striking distance of a six-week low touched the previous day. The US Dollar eases after touching a fresh high since late July and offers some support to the commodity. However, the Fed's hawkish outlook, along with escalating Middle East tensions, should continue to underpin the safe-haven and cap the non-yielding bullion.

XRP and XLM rebound amid mixed signals

Ripple (XRP) and Stellar (XLM) extend their recovery at the time of writing on Thursday after finding support at key technical levels. However, mixed derivatives and on-chain data for both altcoins suggest that traders remain cautious and have yet to show strong conviction in a sustained rebound. Derivatives data shows a mixed and cautious outlook among traders.

BoE expected to hold interest rate at 3.75%

The Bank of England (BoE) is set to reveal its latest monetary policy decision on Thursday, coinciding with its sixth rate-setting meeting of 2026. Market analysts expect the central bank to keep its benchmark interest rate steady at 3.75%, which should be its sixth hold in a row following December’s 25-bps rate cut.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.