XAU/USD Current price: $2,502.15
- Treasury yields trimmed early gains, weighing on the US Dollar.
- Market participants await the release of the US Consumer Price Index on Wednesday.
- XAU/USD battles to extend gains beyond $2,500 as bulls paused.
Spot Gold trades just around the $2,500 mark, unchanged on Monday and confined to a tight intraday range. The bright metal peaked at $2,505.18 early in the American session, as Treasury yields started the day with a positive footing. The United States (US) 10-year note peaked at 3.76% but then trimmed gains and currently stands at 3.70%.
The US Dollar remained resilient throughout the first half of the day, extending Friday’s NFP-inspired gains. The poor performance of Asian indexes added to USD strength, which receded mid-European session, as local shares managed to post gains, underpinning Wall Street ahead of the opening.
Financial markets are waiting for US inflation data, as the country will release the August Consumer Price Index (CPI) next Wednesday. The index is foreseen up by 2.6% on a yearly basis, easing from the 2.9% posted in July. The core annual reading, however, is expected to remain unchanged at 3.2%.
Following the release of the Nonfarm Payroll (NFP) report, speculative interest lifted bets the Federal Reserve (Fed) may opt for a 50 basis points (bps) rate cut when it meets next week. Cooling inflationary pressures will add to such speculation.
XAU/USD short-term technical outlook
From a technical point of view, the daily chart for XAU/USD shows bulls hold the grip but stay cautious. The pair is currently hovering around a mildly bullish 20 Simple Moving Average (SMA), with buyers quickly adding on dips below the media. At the same time, technical indicators hover around their midlines without clear directional strength. Finally, the longer moving averages maintain modest bullish slopes far below the current level.
The near-term picture is neutral-to-bearish. Converging 20 and 100 SMAs provide resistance around the aforementioned intraday high, while the 200 SMA aims north at around $2,465. The Momentum indicator aims lower at around its midline, skewing the risk to the downside without confirming it. Finally, the Relative Strength Index (RSI) indicator holds directionless at around 50, lacking directional strength.
Support levels: 2,489.60 2,475.70 2,461.50
Resistance levels: 2,507.60, 2,519.75 2,531.60
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 extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
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.