XAU/USD Current price: $1,863.29
- US Treasury yields advancing amid a worsening market’s mood.
- ECB President Lagarde reiterated that it is no time to tighten the monetary policy.
- XAU/USD holds on to gains near a fresh multi-month high of 1,870.48.
Gold consolidates gains in the $1,860 price zone, marginally lower on a daily basis, although after reaching a fresh multi-month high earlier in the day. XAU/USD hit 1,870.48 during London trading hours, as the greenback shed ground on the heels of a better market mood. Chinese data released at the beginning of the day was upbeat, helping to ease growth-related concerns.
Subdued yields changed course after Wall Street’s opening, with that on the 10-year US Treasury note jumping to 1.61%, while at the same time, US indexes trimmed pre-opening gains and currently struggle around their midlines. Gold recovered from its intraday low as the sentiment took a turn to the worst.
Investors are still eyeing inflation levels and central banks monetary policies’ decisions for direction. On Monday, European Central Bank President Christine Lagarde said that any tightening measure now would cause more harm than good to the economy, highlighting the imbalances with the US Federal Reserve. The week will be light in macroeconomic releases, which means speculative interest will keep an eye on stocks and yields for direction.
Gold price short-term technical outlook
XAU/USD has posted a higher high and a higher low on a daily basis, a sign that bulls retain the lead, despite currently being down. The daily chart shows that the bright metal keeps developing above all of its moving averages, with the 20 SMA gaining bullish traction above the longer ones. At the same time, technical indicators consolidate within overbought levels with modest upward slopes, in line with the dominant bullish trend.
The 4-hour chart shows that buyers are defending the downside on approaches to a bullish 20 SMA, which provides intraday support and currently stands at 1,858.10. The Momentum indicator heads south near its midline, reflecting the absence of follow-through beyond the 1,870 price zone, while the RSI indicator consolidates around 60.
Support levels: 1,858.10 1,845.20 1,837.50
Resistance levels: 1,870.10 4 1,883.00 1,895.20
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
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.