XAU/USD Current price: $2,392.25
- Encouraging United States macroeconomic data fell short of triggering action.
- The focus remains on central banks, with the Bank of Japan and the Federal Reserve coming up.
- XAU/USD extends its consolidative phase, buyers paused but retain control.
Gold price struggles to regain the $2,400 mark on Tuesday, hovering just below the threshold with a modest intraday positive tone. XAU/USD trades rangebound as speculative interest assesses news from the United States (US) ahead of the Federal Reserve (Fed) monetary policy decision on Wednesday.
Meanwhile, the US Bureau of Labor Statistics (BLS) released the June Job Openings and Labor Turnover Survey (JOLTS) report, which showed that openings on the last business day of the month stood at 8.184 million, below the upwardly revised 8.23 million posted in May. Additionally, the Conference Board (CB) revealed that the Consumer Confidence Index rose in July to 100.3 from a downwardly revised 97.8 in June.
Anyway, the focus remains on upcoming central banks’ decisions. Ahead of the Asian opening, market talks suggest the Bank of Japan (BoJ) could discuss raising rates to 0.25%. Expectations also point to a reduction in government bond purchases. The one thing clear is that the BoJ can no longer remain on hold.
Later on Wednesday, the Fed will take the stage. The US central bank is widely anticipated to keep interest rates unchanged, although market participants hope policymakers will provide clues on a September rate cut. Ever since Chairman Jerome Powell adopted a more dovish speech, hopes for two interest rate cuts before year-end have skyrocketed.
XAU/USD short-term technical outlook
From a technical point of view, the bearish potential for XAU/USD seems limited. In the daily chart, the pair is trading just below a still bullish 20 Simple Moving Average (SMA) while the longer moving averages maintain their upward slopes far below the current level. Technical indicators, in the meantime, remain directionless just above their midlines, as the bright metal remains confined to a tight range for a second consecutive day.
In the near term, and according to the 4-hour chart, XAU/USD is neutral-to-bullish. The pair is trading just above the 50% Fibonacci retracement of the June/July rally at $2,388.25 while still contained between directionless moving averages. However, technical indicators have picked up modestly within positive levels, skewing the risk to the upside.
Support levels: 2,388.25 2,366.30 2,353.00
Resistance levels: 2,403.10 2,418.15 2,431.30
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
AUD/USD faces a potential deeper decline
AUD/USD set aside two daily gains in a row and resumed its downtrend on the back of incessant demand concerns in China as well as the persistent weakness in the commodity universe.
EUR/USD looks at the Fed for near term direction
EUR/USD extended its bearish start to the week and briefly broke below the 1.0800 support on the back of marginal losses in the Greenback ahead of the key FOMC event on Wednesday.
Gold consolidates just below the $2,400 mark
Gold fluctuates in a narrow channel below $2,400 after closing the first trading day of the week little changed. The 10-year US Treasury bond yield holds steady slightly below 4.2% after US data, making it difficult for XAU/USD to gain traction.
Ripple likely closer to lawsuit victory as SEC backs down on classifying Solana, ADA, MATIC as securities
Ripple (XRP) traders expect the lawsuit brought by the Securities & Exchange Commission (SEC) to end this week. A pro-crypto attorney, Fred Rispoli, had predicted the end of SEC vs. Ripple lawsuit by July 2024.
The Fed balance sheet may be a side show but it's worth watching
Did you know the Fed has already loosened monetary policy? While everybody focuses on the prospect of a Federal Reserve interest rate cut and salivates in the hope of easier money, most people completely ignore the other prong of central bank monetary policy – the Fed balance sheet.