XAU/USD Current price: $1,876.6
- The US Consumer Price Index is expected to have increased by 6.5% YoY in December.
- Financial markets reflect optimism about the Chinese economic comeback.
- XAU/USD consolidates gains near a fresh eight-month high of $1,880.90 a troy ounce.
The broad US Dollar weakness pushed spot gold to $1,880.90 a troy ounce on Monday, its highest since May 2022. The Greenback eased on the back of an upbeat mood, based on speculation the US Federal Reserve has room to reduce the pace of monetary tightening, coupled with hopes China will positively influence global growth. News over the weekend indicated that the world’s second-largest economy re-opened sea and land crossings with Hong Kong, which were closed three years ago.
Asian and European indexes closed in the green, while US stock markets also trade in positive territory, maintaining the US Dollar at the lower end of its daily range. US Treasury yields, in the meantime, stand below their opening levels, shedding some ground ahead of the release of the US Consumer Price Index (CPI). The United States will publish an update on inflation next Thursday, with the annual CPI foreseen up by 6.5% YoY, further decelerating from the multi-decade high increase of 9.1% YoY posted last June.
XAU/USD price short-term technical outlook
XAU/USD trades near daily highs in the $1,870.00 price zone, retaining its bullish strength according to the daily chart. Technical indicators lost their upward momentum after nearing overbought readings, holding ground mid-US session. At the same time, the bright metal extends its advance above its moving averages, with the 20 Simple Moving Average (SMA) gaining upward traction and providing dynamic support at around 1,815.00.
The 4-hour chart shows that bulls maintain control of XAU/USD, also that they are now in wait-and-see mode. Technical indicators are directionless, well above their midlines, without signs of bullish exhaustion. At the same time, moving averages keep heading north far above the current level, reflecting continued buying pressure.
Support levels: 1,883.50 1,897.45 1,910.00
Resistance levels: 1,865.50 1,843.10 1,825.00
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
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold hovers around $2,630 in thin trading
The US Dollar returns from the Christmas holidays with a soft tone, although market action seems contained. The positive tone of Asian shares weighs on the Greenback.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.