- Gold price is regaining upside traction in a potential bullish end to the week.
- US Dollar drops with the US Treasury bond yields, as traders weigh hawkish Federal Reserve bets.
- United States ISM Services PMI is next of note for Gold traders.
- Gold price reattempts 21-Daily Moving Average resistance at $1,844.
Gold price is making headway for another run higher on Friday, having stalled its recovery mode a day before. Gold price is set for the first weekly gain in five weeks, as the United States Dollar (USD) has paused its uptrend ahead of the high-impact United States Services PMI data.
US Dollar eases ahead of United States ISM Services PMI
Gold price is back in the green on the final trading day, with the renewed upside likely due to a retreat in the US Dollar alongside the US Treasury bond yields across the curve. Investors weigh the prospects of more US Federal Reserve (Fed) rate hikes, in the face of increasing worries over a ‘soft-landing’ amidst a mixed slew of economic data releases from the United States.
Hot inflation in the Eurozone and the US pushed global yields higher, sending the US Treasury yields to multi-month highs in tandem, which limited the upside in the Gold price. However, the benchmark 10-year US Treasury bond yields have pulled back from four-month highs, motivating Gold bulls once again.
Attention now turns toward the US ISM Services PMI data for February due later in the North American session for a fresh take on the Fed expectations, especially after Atlanta Fed President Raphael Bostic said that "slow and steady is going to be the appropriate course of action," which took the wind out of the US Dollar rebound.
The headline US Services PMI is seen easing to 54.5 vs. 55.2 previous. Meanwhile, the ISM Services Prices Paid (Feb) is likely to drop sharply to 64.5, compared to 67.8 reported previously.
Gold price technical analysis: Daily chart
Gold buyers seem to have regained footing early Friday, allowing Gold price to head back toward the weekly high of $1,844.
At that level, the bearish 21-Daily Moving Average (DMA) coincides, making it a powerful resistance. Gold bulls yearn for a daily candlestick closing above the latter to add extra legs to the ongoing recovery in the bright metal.
Fresh buying opportunities will be created above the 21 DMA hurdle, fuelling a rally toward the mildly bullish 50 DMA at $1,858.
Note that the falling wedge breakout, confimed earlier this week, still remains in play. However, the bearish 14-day Relative Strength Index (RSI) remains a cause for concern for Gold bulls.
If they fail to find acceptance above the 21 DMA barrier, then Gold price could come under intense selling pressure. The previous day’s low of $1,830 will be the first in sight for Gold sellers, below which a test of the $1,820 round level will be inevitable.
Further south, the confluence zone of the February 28 low and the ascending 100 DMA between the $1,805-$1,801 price range could act as a strong demand area.
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 below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.