XAU/USD Current price: $2,628.68
- Federal Reserve officials aligned before Chair Powell’s dovish message.
- The United States will publish the August PCE Price Index this week.
- XAU/USD trades near fresh record highs, partially losing its bullish momentum but far from bearish.
Spot Gold traded as high as $2,634.74 a troy ounce on Monday, achieving yet another record high. XAU/USD currently hovers around $2,530, as the broad US Dollar weakness maintains the pair afloat. The Greenback found near-term demand throughout the first half of the day, but gains were modest, and the USD advance looked corrective.
It later suffered a setback as multiple Federal Reserve (Fed) officials publicly supported last week’s decision to trim rates by 50 basis points (bps) while hinting at more monetary loosening in the next few months. The dovish shift in policymakers’ tone did not impact Wall Street, as US indexes hover around their opening levels, not far from the highs posted last week.
Meanwhile, S&P Global released the preliminary estimates of the United States (US) September Purchasing Managers Indexes (PMIs), which showed business activity growth remained robust in the month. The Manufacturing PMI declined to 47 from the previous 47.9, missing the 48.5 anticipated by financial markets. On the other hand, the Services PMI posted 55.4, which is better than the 55.2 expected. Finally, the Composite PMI was reported at 54.4, slightly below the previous 54.6.
By the end of the week, the US will publish the August Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite inflation gauge. The data could hint at what the central bank may do next and whether aggressive rate cuts would become the norm.
XAU/USD short-term technical outlook
XAU/USD is up for a third consecutive day, and technical readings maintain the bullish case alive despite the easing momentum. The daily chart shows technical indicators are stabilizing within overbought readings while moving averages maintain their positive strength far below the current level. In fact, the 20 Simple Moving Average (SMA) stands at around $2,540, reflecting bulls’ strength in the last few weeks.
In the near term, and according to the 4-hour chart, some unconfirmed bearish divergences hint at a potential correction. Technical indicators pulled back from their recent highs with neutral-to-bearish slopes, supporting a near-term retracement. At the same time, XAU/USD keeps developing above bullish moving averages, with the 20 SMA accelerating north above the longer ones and acting as dynamic support at around $2,597.
Support levels: 2,613.50 2,698.10 2,684.60
Resistance levels: 2,635.00 2,650.00 2,675.00
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
Gold price extends fresh record run toward $3,500
Gold price continues to build on its record rally, closing in on the $3,500 mark in Asian trading on Tuesday. Investors continue to flock to safety in the traditional store of value, the Gold price, amid no confidence in the US Dollar and Trump’s attacks on Fed Chairman Powell.
AUD/USD bounces back toward 0.6450 as US Dollar resumes downside
AUD/USD picks up fresh bids toward 0.6450 in the Asian session on Tuesday. The US Dollar fizzles its bounce and resumes downside amid uncertainty over Trump's trade policies and the weakening confidence in the US economy. Concerns about the rapidly escalating US-China trade war could act as a headwind for the Aussie.
USD/JPY mires in multi-month low near 140.00
USD/JPY languishes in seven-month lows near 140.00 in the Asian session on Tuesday. Trade war concerns, global recession fears, hopes for a US-Japan trade deal, and the divergent BoJ-Fed bets could continue to underpin the Japanese Yen while the US Dollar selling resumes.
ARK Invest integrates Canada's 3iQ Solana Staking ETF into its crypto funds
Asset manager ARK Invest announced on Monday that it added exposure for Solana staking to its ARK Next Generation Internet exchange-traded fund and ARK Fintech Innovation ETF through an investment in Canada's 3iQ Solana Staking ETF.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.