XAU/USD Current price: $2,329.40

  • United States Retail Sales missed expectations, Industrial Production resulted upbeat.
  • US indexes maintain a positive tone after posting gains on Monday.
  • XAU/USD approaches its comfort zone at around $2,330, with modest upward strength.

Spot Gold trades near $2,330 a troy ounce, with XAU/USD trimming early early losses. The pair fell towards the $2,300 mark throughout European trading hours, turning north following the release of United States (US) macroeconomic data. The country reported that Retail Sales rose a measly 0.1% in May, missing the 0.2% advance expected. Furthermore, the April reading was downwardly revised from 0.0% to -0.2%.

However, the US also released May Industrial Production data, which beat expectations by surging 0.9% MoM. Capacity Utilization in the same period rose 78.7%, better than the previous 78.2% and the 78.6% forecast.

The mixed news did little to change the generally optimistic mood among American investors. Wall Street closed in the green on Monday, and US indexes maintain the positive trajectory on Tuesday, with the Dow Jones Industrial Average and the S&p 500 extending weekly gains. The Nasdaq Composite, on the contrary, is down 16 points. As a result, the US Dollar is under near-term pressure against most of its major rivals.

XAU/USD short-term technical outlook

From a technical point of view, XAU/USD has made no progress. It trades within familiar levels for a second consecutive week. The daily chart shows it's still developing below a bearish 20 SMA, providing dynamic resistance at around $2,335.00. At the same time, technical indicators have turned marginally lower but remain within negative levels, suggesting buying interest is not enough to trigger a bullish extension.

The near-term picture is neutral, although the risk skews to the upside. In the 4-hour chart, XAU/USD trades above a flat 20 SMA but below the 100 and 200 SMAs. The Momentum indicator aims modestly higher above its 100 line, while the Relative Strength Index (RSI) indicator aims north with more strength, standing at around 55.

Support levels: 2,314.25 2,298.10 2,286.70

Resistance levels: 2,335.00 2,351.90 2,366.30

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


Recommended Content

Editors’ Picks

EUR/USD stays vulnerable near 1.0600 ahead of US inflation data

EUR/USD stays vulnerable near 1.0600 ahead of US inflation data

EUR/USD remains under pressure near 1.0600 in European trading on Wednesday. The pair faces headwinds from the US Dollar upsurge, Germany's political instability and a cautiou market mood, as traders look to US CPI data and Fedspeak for fresh directives. 

EUR/USD News
GBP/USD trades with caution below 1.2750, awaits BoE Mann, US CPI

GBP/USD trades with caution below 1.2750, awaits BoE Mann, US CPI

GBP/USD trades with caution below 1.2750 in the European session on Wednesday, holding its losing streak. Traders turn risk-averse and refrain from placing fresh bets on the pair ahead of BoE policymaker Mann's speech and US CPI data. 

GBP/USD News
Gold price holds above $2,600 mark, bulls seem non committed ahead of US CPI

Gold price holds above $2,600 mark, bulls seem non committed ahead of US CPI

Gold price staged a modest recovery from a nearly two-month low touched on Tuesday. Elevated US bond yields and bullish USD cap gains for the non-yielding XAU/USD. Traders now look forward to the key US Consumer Price Index report a fresh impetus. 

Gold News
US CPI data set to confirm inflation ramped up in October as traders pare back Fed rate cut bets

US CPI data set to confirm inflation ramped up in October as traders pare back Fed rate cut bets

As measured by the CPI, inflation in the US is expected to increase at an annual rate of 2.6% in October, a tad higher than the 2.4% growth reported in September. The core annual CPI inflation, excluding volatile food and energy prices, will likely remain at 3.3% in the same period.

Read more
Forex: Trump 2.0 – A high-stakes economic rollercoaster for global markets

Forex: Trump 2.0 – A high-stakes economic rollercoaster for global markets

The "Trump trade" is back in full force, shaking up global markets in the aftermath of the November 5th U.S. election. This resurgence has led to substantial shifts in both currency and bond markets, with the U.S. dollar index (DXY) jumping 2.0% + since election day.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Majors

Cryptocurrencies

Signatures