- December inflation figures meet expectations in the U.S.
- US Dollar Index recovers daily losses, turns positive above 95.50.
- Wall Street looks to snap 5-day winning streak.
After climbing to the $1295 area earlier in the day, the XAU/USD pair came under strong bearish pressure in the early NA session and slumped to $1287 before finding support and going into a consolidation phase. As of writing, the pair was up 0.3% on the day at $1290.
Today's data from the U.S. showed that the core CPI, which strips volatile energy and food prices, increased 2.2% on a yearly basis in December to match November's reading and the market expectation. With data not offering any surprises, the US Dollar Index stayed relatively quiet. However, a sudden buying wave hit the currency and lifted the US Dollar Index to its highest level of the day at 95.76 to weigh on the XAU/USD pair.
On the other hand, with major equity indexes in the U.S. having a hard time carrying the rally into a 6th day on Friday, the risk appetite weakened and helped the precious metal retrace its drop. At the moment, the Dow Jones Industrial Average and the S&P 500 were both down around 4% and the Nasdaq Composite was losing 0.67% on the day.
Technical levels to consider
XAU/USD
Overview:
Today Last Price: 1289.8
Today Daily change: 3.5e+2 pips
Today Daily change %: 0.272%
Today Daily Open: 1286.3
Trends:
Previous Daily SMA20: 1271.77
Previous Daily SMA50: 1243.49
Previous Daily SMA100: 1227.63
Previous Daily SMA200: 1229.07
Levels:
Previous Daily High: 1297.15
Previous Daily Low: 1286.25
Previous Weekly High: 1298.42
Previous Weekly Low: 1276.82
Previous Monthly High: 1284.7
Previous Monthly Low: 1221.39
Previous Daily Fibonacci 38.2%: 1290.41
Previous Daily Fibonacci 61.8%: 1292.99
Previous Daily Pivot Point S1: 1282.65
Previous Daily Pivot Point S2: 1279
Previous Daily Pivot Point S3: 1271.75
Previous Daily Pivot Point R1: 1293.55
Previous Daily Pivot Point R2: 1300.8
Previous Daily Pivot Point R3: 1304.45
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.