Gold prices in terms of the US dollar (XAU/USD) extended gains on Friday and closed at 1133.27, holding above 50-DMA located at 1132.26. The pair remained supported all through the day, although slipped to lows at 1123.83 just before the US data release as markets anticipated better economic data due from the US. Subsequently the prices bounced-off lows and spiked to 1140.87 highs after the US consumer confidence data disappointed markets. The Thomson Reuters/UoM Consumer Confidence Index booked 91.9 points during August, compared to the final 93.1 seen in July. However, the yellow metal failed to sustain at higher levels and retreated to 1130 levels as markets remained cautious amid the Jackson Hole Symposium underway with US central bankers’ speeches awaited over the weekend.
XAU/USD extends gains for the third straight session on Monday, after posting first biggest weekly drop in five last week, as broad based US dollar weakness on the back of correction from the recent US data-led rally lends a helping hand to the prices. Moreover, the prices received support from falling Asian and European indices amid ongoing fears over Chinese growth, as it makes the higher yielding yellow metal more attractive to the traders. While the gains were capped as investors digest the prospects for the rate lift-off in the US in September after the Jackson Hole Symposium leaves doors open for Fed tightening despite the recent high volatility in the financial markets.
Technicals – Fighting hard to extend beyond 50-DMA
XAU/USD tries to keep its upbeat momentum intact ahead of a data-heavy week with the crucial US NFP report to set further direction on the gold prices. The prices seem to have found good support at 50-DMA located at 1131.23 levels, below which prices could retest daily lows at 1129.23. The daily RSI has turned flattish at 54 indicating no clear direction in sight. The pair appears to face stiff resistance at the upward sloping 10-DMA located at 1138.50.
A break above the last, the prices could attempt another run towards 1140 levels, a break of which opens doors for further upside near 1146 region. With a data-light session ahead, gold prices are likely to extend its range trade awaiting fresh incentives from the employment numbers due later this week which may have major impact on the Fed’s rate decision and hence further USD moves.
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: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.