Gold Price Forecast: Bulls losing interest, support at $1,860.00
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CLAIM OFFERXAU/USD Current price: $1,872.85
- Market players maintain the focus on policymakers and hints about future monetary policies.
- US indexes have lost Powell’s inspired momentum and trade in the red on Wednesday.
- XAU/USD is range bound, with buying interest decreasing amid renewed US Dollar demand.
The American Dollar traded with a soft tone throughout the first half of the day, allowing XAU/USD to reach a fresh weekly high of $ 1,886.41 a troy ounce. The tie changed ahead of the US opening, and the Greenback found some demand amid easing US indexes. Still, major pairs held within familiar levels amid the absence of a fresh catalyst. The bright metal currently trades at $1,874.00 a troy ounce.
Market participants focus on central banks and whatever hint policymakers provide on future monetary policies. US Federal Reserve (Fed) Chair Jerome Powell hit the wires on Tuesday and was short of compelling speculative interest in the Fed’s determination to tame inflation at any cost. Powell repeated that they were determined to control inflation and would continue tightening the monetary policy by hiking rates. Still, he reiterated the disinflationary process has begun, fueling hopes for a rate cut by year-end.
Fed officials speaking in different events on Wednesday reaffirmed such a stance, as Fed Governor Lisa Cook noted that, given that inflation is still running high, they would need a restrictive monetary policy for some time. Also, New York Federal Reserve President John Williams said the central bank will keep an eye on data to determine the rate rise path, backing Powell on the idea that they still have more to do on rates.
XAU/USD price short-term technical outlook
The XAU/USD pair is up for a third consecutive day but still trading at the lower end of the previous week’s range. On a daily basis, the risk remains skewed to the downside, as the pair keeps developing well below a now directionless 20 Simple Moving Average (SMA), while the longer ones stay far below the current one. The Momentum indicator gains downward traction and stands at fresh weekly lows, while the Relative Strength Index (RSI) consolidates around 46.
In the near term, and according to the 4-hour chart, XAU/USD offers a neutral-to-bearish stance. The 20 SMA has crossed below the longer ones and maintains a firmly bearish slope, with the pair hovering around it. Attempts to run beyond it met sellers around the 200 SMA, currently at $1,881.50. Finally, technical indicators remain flat, with the Momentum stuck around its 100 level but the RSI consolidating around 38, indicating easing buying interest.
Support levels: 1,860.20 1,847.60 1,835.10
Resistance levels:1,881.50 1,892.30 1,901.00
XAU/USD Current price: $1,872.85
- Market players maintain the focus on policymakers and hints about future monetary policies.
- US indexes have lost Powell’s inspired momentum and trade in the red on Wednesday.
- XAU/USD is range bound, with buying interest decreasing amid renewed US Dollar demand.
The American Dollar traded with a soft tone throughout the first half of the day, allowing XAU/USD to reach a fresh weekly high of $ 1,886.41 a troy ounce. The tie changed ahead of the US opening, and the Greenback found some demand amid easing US indexes. Still, major pairs held within familiar levels amid the absence of a fresh catalyst. The bright metal currently trades at $1,874.00 a troy ounce.
Market participants focus on central banks and whatever hint policymakers provide on future monetary policies. US Federal Reserve (Fed) Chair Jerome Powell hit the wires on Tuesday and was short of compelling speculative interest in the Fed’s determination to tame inflation at any cost. Powell repeated that they were determined to control inflation and would continue tightening the monetary policy by hiking rates. Still, he reiterated the disinflationary process has begun, fueling hopes for a rate cut by year-end.
Fed officials speaking in different events on Wednesday reaffirmed such a stance, as Fed Governor Lisa Cook noted that, given that inflation is still running high, they would need a restrictive monetary policy for some time. Also, New York Federal Reserve President John Williams said the central bank will keep an eye on data to determine the rate rise path, backing Powell on the idea that they still have more to do on rates.
XAU/USD price short-term technical outlook
The XAU/USD pair is up for a third consecutive day but still trading at the lower end of the previous week’s range. On a daily basis, the risk remains skewed to the downside, as the pair keeps developing well below a now directionless 20 Simple Moving Average (SMA), while the longer ones stay far below the current one. The Momentum indicator gains downward traction and stands at fresh weekly lows, while the Relative Strength Index (RSI) consolidates around 46.
In the near term, and according to the 4-hour chart, XAU/USD offers a neutral-to-bearish stance. The 20 SMA has crossed below the longer ones and maintains a firmly bearish slope, with the pair hovering around it. Attempts to run beyond it met sellers around the 200 SMA, currently at $1,881.50. Finally, technical indicators remain flat, with the Momentum stuck around its 100 level but the RSI consolidating around 38, indicating easing buying interest.
Support levels: 1,860.20 1,847.60 1,835.10
Resistance levels:1,881.50 1,892.30 1,901.00
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