XAU/USD Current price: $1,849.95
- Easing tensions in the Ukrainian border weighed on safe-haven assets, gold got smashed.
- The better market mood persists despite the latest comments from Russian President Putin.
- XAU/USD is in a corrective decline, could turn bearish on a break below a Fibonacci support level.
Spot gold turned sharply lower after hitting an intraday high of $1,879.48 a troy ounce, a level that was last seen in June 2021. Financial markets keep fluctuating at the rhythm of Russia-Ukraine headlines. Investors turned optimistic on headlines indicating that Russia would withdraw troops from the Ukrainian border after they completed military exercises.
Optimism returned to financial markets and persisted well into the American session, despite there being no signs of progress. President Vladimir Putin noted that he does not want a war in Europe, adding that the decision on a partial withdrawal of troops has been taken. However, he also said that a "genocide" taking place in Eastern Ukraine's Donbass region and that Western nations answers to his proposals were not "constructive."
Gold plunged to $1,843.77 a troy ounce as stocks recovered their poise and government bond yields resumed their advances. Demand for the greenback eased, but the dollar's losses were partially offset by stronger yields. At the time being, Wall Street is firmly up holding on to substantial intraday gains. The yield on the 10-year Treasury note recovered above the 2% threshold, peaking for the day at 2.05%.
Gold price short-term technical outlook
The XAU/USD pair trades around $1,852 a troy ounce, sharply down for the day but with limited bearish potential in the daily chart. Technical indicators hold within positive levels, although the RSI has already turned south. Meanwhile, moving averages remain far below the current level, with the 20 SMA maintaining its bullish slope above the longer ones.
The bright metal is so far holding above the 38.2% retracement of its latest bullish run at 1,841.40, the immediate support level. In the near term, and according to the 4-hour chart, the movement seems corrective. Gold is currently hovering around a bullish 20 SMA, while technical indicators corrected extreme overbought readings, now losing their bearish strength within positive levels.
Support levels: 1,841.40 1,829.70 1,817.90
Resistance levels: 1,858.00 1,866.65 1,879.50
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.