- Yellow metal consolidates around $1210, holds firm to yesterday’s gains.
- Price remains capped by $1215 and supported above $1208.
Gold moved all day in a range between $1,208/oz and $1,215, around yesterday’s closing price. It consolidated Wednesday’s gains when it rose from $1200 to $1216, on the back of a slide in US yields.
Price action across financial market remained limited with the focus on UK political developments. The pound dropped sharply but other crosses move modestly. The greenback posted mix results and again ignored US economic data.
The yellow metal managed to post the third consecutive day of gains but did not trade above yesterday’s highs. The positive tone still prevails but in order to clear the way to more gains, it needs to break and hold on top of $1215.
XAU/USD Technical outlook
“The metal still offers a limited upward potential in its daily chart, as despite being in recovery mode, it's currently trading right below its 100 DMA, while technical indicators in the daily chart have bounced from their lows but hold well into negative ground and with limited upward strength”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4 hours chart, shows price hovering around a directionless 200 SMA for the last 24 hours, mid-way between the 20 and 100 SMA, while technical indicators lack directional strength, consolidating above their midlines.
Resistance levels are located at $1,216.55, $1,223.50 and $1,231.70. While on the flip side, support could be seen at $1,203.10, $1,191.20 and $1,182.75.
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 recovers to 0.6700 amid upbeat mood
AUD/USD is battling 0.6700, recovering losses induced by softer Australian monthly inflation data. The US Dollar is struggling to extend the rebound amid a better market mood, as the global banking jitters ease. Focus on US data, Fedspeak.
USD/JPY approaches 132.00 amid BoJ-speak, firmer yields
USD/JPY is holding higher ground, approaching the 132.00 level early Wednesday. The pair is capitalizing on the risk-on mood and higher US Treasury bond yields amid mixed comments from the BoJ policymakers. US housing data next on tap.
Gold to extend choppy trading, awaiting a fresh catalyst Premium
Gold price has paused the previous rebound early Wednesday, as the United States Dollar (USD) seems to have found its feet following a rough start to the week. However, the underlying strength in the US Treasury bond yields so far this week could limit the Gold price advance.
This is how Arbitrum and Optimism are dragging users away from Ethereum
Arbitrum became the highlight of the month as the Layer-2 (L2) blockchain launched its native token, ARB. Since then, the L2 narrative that was once the talking point of 2022 has exploded again.
Unfazed: Confidence edges higher despite banking situation
Consumers may not love the present conditions, but a slightly more upbeat take on where things are headed was enough to give overall confidence a nudge in the right direction in March.