Gold outlook: Post-Fed weakness likely to extend after recovery stall
|XAU/USD
Gold bounced from new one-month low ($2582), hit on post-Fed 2.3% drop on Wednesday, but gains were so far short-lived.
Recovery stalled at $2626, with subsequent acceleration lower pushed the price again below important (broken) supports at $2605/00 (100DMA / psychological).
Wednesday’s close below these levels generated initial bearish signal, which will be validated on repeated daily close below, with long upper shadow of Thursday’s daily candle, signaling that offers remain strong.
However, temporary base that has formed at $2581 (lows of Wed/Thu / Fibo 76.4% of $2536/$2726) marks solid support which may hold for some time.
Bearish technical studies on daily chart contribute to Gold-negative fundamentals (Fed’s hawkish cut and signals of slower pace of rate cuts in 2025 strongly inflated dollar) and keep near-term risk shifted to the downside.
Immediate bias to remain with bears while the price stays below $2600/05), with stronger upticks to be capped under daily Ichimoku cloud base, reinforced by Kijun-sen ($2631).
Res: 2600; 2605; 2631; 2650.
Sup: 2581; 2564; 2536; 2511.
Interested in XAU/USD technicals? Check out the key levels
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.