- US stocks struggle to push higher on Wednesday.
- US Dollar Index continues to move sideways above 96.
- Coming up: Fed's Beige Book and no confidence vote in UK.
Since failing to surpass the $1300 mark earlier in January, the XAU/USD pair has been fluctuating in a tight range and today's price action is no different. After easing below the $1290 earlier in the day, the pair edged higher in the last hour and renewed its session high at $1295. As of writing, the pair was up 0.4% on the day at $1294, adding $5 on a daily basis.
The recent uptick witnessed in the pair seems to be a product of souring market sentiment as reflected by the trading action in Wall Street. Following a positive start to the day, major equity indexes in the U.S. were able to push higher before losing their traction. The Dow Jones Industrial Average, which added as much as 0.75%, was last up 0.4% and the Nasdaq Composite was clinging to small gains, rising only 0.1%.
On the other hand, with the greenback staying in the green above the 96 handle, the pair is unlikely to challenge the critical $1300 mark. Today's data from the U.S. showed that the housing sector has shown a slight improvement with the NAHB's Business Confidence Index coming in 58 vs market expectation of 56.
Later in the session, markets will be paying close attention to the leadership challenge in the UK. Although it seems unlikely, if British Prime Minister Theresa May loses the confidence vote and the UK goes for a general election, safe-havens could start to gather strength against its rivals.
Technical levels to consider
XAU/USD
Overview:
Today Last Price: 1294.4
Today Daily change: 5.3e+2 pips
Today Daily change %: 0.414%
Today Daily Open: 1289.06
Trends:
Previous Daily SMA20: 1278.53
Previous Daily SMA50: 1247.69
Previous Daily SMA100: 1230.43
Previous Daily SMA200: 1228.94
Levels:
Previous Daily High: 1294.75
Previous Daily Low: 1286.95
Previous Weekly High: 1297.15
Previous Weekly Low: 1279.35
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Previous Daily Fibonacci 38.2%: 1289.93
Previous Daily Fibonacci 61.8%: 1291.77
Previous Daily Pivot Point S1: 1285.76
Previous Daily Pivot Point S2: 1282.45
Previous Daily Pivot Point S3: 1277.96
Previous Daily Pivot Point R1: 1293.56
Previous Daily Pivot Point R2: 1298.05
Previous Daily Pivot Point R3: 1301.36
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold ascends but remains shy of testing $2,400 amid hawkish Fed remarks
Gold prices edged higher late in North American session, gaining 0.22% following a hawkish tilt by Fed Chair Jerome Powell. Economic data from the United States was mixed, though Monday’s Retail Sales report and Powell’s remarks kept US Treasury yields higher, capping the yellow metal’s advance.
Bitcoin price outlook amid increased demand and speculation pre-halving
Bitcoin price is edging lower as markets count only days to the halving. Nevertheless, the dump has not shaken the faith of large holders as they continue to cling to their holding even after a month of steady dumps.
UK CPI inflation data ahead: Sterling hovering north of key support
Following today's mixed bag of employment and wages data, today’s attention is directed to the March UK CPI inflation release. Both headline and core measures have surprised to the downside in the previous two releases and are expected to demonstrate further evidence of disinflation.