fxs_header_sponsor_anchor

Analysis

XAU/USD outlook: Bulls hold grip ahead of key US inflation data

XAU/USD

Gold remains at the front foot and edges higher in early Monday, extending recovery into third straight day.

The yellow metal regained ground after last week’s sharp fall, boosted by growing signals that the Fed may opt for 50 basis points rate hike in September.

Weak US economic data warn of worse than expected scenario, with last week’s talks of US economy entering recession (after Fed’s long-lasting calming signals of soft landing) sparking panic in the market.

Although the situation is calmer now, investors remain cautious.

Markets await release of US inflation report for July, which is expected to shed more light on Fed’s next steps on monetary policy.

The metal price is also supported by geopolitical tensions, which adds to overall positive outlook.

Technical studies on daily chart are in full bullish setup and contribute to positive picture, as fresh push higher on Monday broke above Fibo 61.8% of $2483/$2353 ($2433), with close above this level to add to bullish signals.

However, markets are likely to move at a slower pace ahead of release of US CPI data.

Next targets lay at $2452 (Fibo 76.4%), $2477 (Aug 2 spike high), guarding new all-time high at $2483.

Rising 10DMA ($2422) and broken Fibo 50%) mark solid supports which should keep the downside protected and maintain bullish structure.

Res: 2452; 2462; 2477; 2483.
Sup: 2433; 2422; 2418; 2403.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.