XAUUSD Current price: $1,862.83
- Speculative interest is focused on inflation and its potential effects on economic growth.
- Government bond yields soared to multi-year highs but eased after Wall Street open.
- XAUUSD has room to test the $1,800 figure, particularly on a break below $1,850.35.
Gold Price is down at the beginning of the week as risk aversion maintained the greenback on the winning path. The American currency appreciated ever since the day started amid a dismal market mood. Speculative interest is focused on inflation and its potential negative effects on economic growth, as the US will release April Consumer Price Index figures later in the week. Demand for the dollar receded mid-US afternoon, although the bright metal was unable to take advantage of it.
Much of the market’s direction was determined by government bond yields, which jumped to multi-year highs on Monday. The yield on the US 10-year Treasury note hit 3.203%, now down to 3.09%, while that on the German 10-year bund hit 1.189%, currently at around 1.10%.
Gold Prices short-term technical outlook
From a technical point of view, XAUUSD is at risk of falling further. The daily chart shows that a mildly bullish 100 SMA continues to provide dynamic resistance, while the 20 SMA heads firmly lower far above it. Technical indicators, in the meantime, keep consolidating near oversold readings without signs of a potential recovery. The bearish case will likely persist as long as the price holds below $1,885.10, the 23.6% retracement of the April/May slump.
The 4-hour chart shows that the pair is developing below all of its moving averages, as technical indicators hold within negative levels without clear directional strength. Gold bottomed early in May at $1,850.34 a troy ounce, the level to break to confirm another leg south towards the $1,800 figure.
Support levels: 1,850.35 1,838.10 1,825.40
Resistance levels: 1,873.00 1,885.10 1,896.00
View Live Chart for the XAU/USD
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.