XAU/USD Current price: $2,740.65
- Market players are cautiously optimistic ahead of multiple first-tier data.
- Turmoil in Japan and the Middle East backed the US Dollar during Asian trading hours.
- XAU/USD consolidates near record highs, bulls paused but did not give up.
Spot Gold is comfortable trading in the $2,740 price zone, marginally higher for the day. The bright metal gapped lower at the weekly opening amid renewed US Dollar demand, although the latter changed course amid an improved market mood. Such a better sentiment limits the upside for XAU/USD in the American session.
The focus during Asian trading hours was on Japan after a snap election that resulted in the worst result in fifteen years for the Liberal Democratic Party (LDP). Prime Minister Shigeru Ishiba pledged to stay in office despite losing support amid a political scandal, including undocumented political funds and kickbacks. The Japanese Yen (JPY) edged sharply lower, supporting the USD.
Falling oil prices also helped the Greenback. Crude Oil Prices fell after Iran reported that the latest Israel attacks did not affect the country’s oil industry. As a result, stock markets trade in positive territory. Gains are modest ahead of multiple first-tier figures scheduled throughout the week. The United States (US) will publish the flash estimate of the Q3 Gross Domestic Product (GDP) and several employment-related figures ahead of the Nonfarm Payrolls (NFP) report scheduled for Friday. Additionally, the US, Australia, Germany and the Eurozone will publish fresh inflation-related figures, while the Bank of Japan (BoJ) will announce its decision on monetary policy.
XAU/USD short-term technical outlook
Gold holds on to modest intraday gains but trades below Friday’s close and within familiar levels. XAU/USD daily chart shows moving averages keep heading north far below the current level, with the 20 Simple Moving Average (SMA) accelerating higher, in line with buyers’ dominance. Technical indicators, on the contrary, offer neutral-to-bearish slopes holding within positive levels.
Even further, XAU/USD met intraday buyers just ahead of $2,721.20, the 23.6% Fibonacci retracement of the $2,601.87/$2,756.36 rally. More relevant support comes at $2,698.66, which is the 38.2% retracement of the same rally.
The near-term technical picture is neutral. The XAU/USD 4-hour chart shows the pair barely holding above a mildly bearish 20 SMA. The 100 and 200 SMAs keep heading north far below the current level, yet technical indicators have turned marginally lower, just above their midlines. A break through the intraday high at around $2,745.90 should favor a retest of the record high en route to the $2,800 mark.
Support levels: 2,721.20 2,708.50, 2,698.60
Resistance levels: 2,745.90 2,758.40 2,775.00
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
USD/JPY remains close to two-week high ahead of BoJ-Fed policy decisions
USD/JPY attracts fresh buyers during the Asian session on Wednesday and stalls the overnight modest pullback from the vicinity of the 150.00 mark or a two-week high. The upside, however, seems limited amid the divergent BoJ-Fed expectations. Hence, the focus will remain on the crucial BoJ policy decision and the outcome of a two-day FOMC meeting later today.
AUD/USD holds steady above mid-0.6300s, FOMC decision awaited
AUD/USD consolidates below a three-week high touched on Tuesday as traders opt to move to the sidelines ahead of the crucial Fed policy decision. The USD languishes near a five-month low amid bets that the Fed will cut rates several times this year, which, along with the optimism over China's stimulus measures, could act as a tailwind for the pair.
Gold price sits near all-time peak, looks to Fed for fresh impetus
Gold price remains close to the record high touched on Tuesday as rising Middle East tensions and the uncertainty over Trump's trade policies continue to underpin the safe-haven bullion. Bulls, however, take a pause for a breather amid slightly overbought conditions and ahead of the crucial Fed policy decision.
Bank of Japan set to hold interest rates unchanged in March
The Bank of Japan is on track to keep the short-term interest rate steady at 0.50% following its two-day March monetary policy review on Wednesday. Any signals on the timing and the scope of future rate hikes by the BoJ will likely infuse intense volatility around the Japanese Yen.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
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.