XAU/USD Current price: $1,835.33
- Geopolitical tensions and price pressures continue to undermine the market mood.
- FOMC Meeting Minutes unlikely to shock investors as Fed path is clear.
- XAU/USD maintains a neutral-to-bearish stance as investors wait for fresh clues.
Financial markets struggled for a clear direction early Wednesday as investors await the Federal Open Market Committee (FOMC) Meeting Minutes. XAU/USD peaked at $1,845.99 a troy ounce mid-European session but quickly retreated amid prevalent US Dollar demand. The bright metal currently trades around $1,835, unchanged on the day.
Geopolitical tensions and stubborn inflation are at the top of investors’ concerns these days. On the one hand, China reaffirmed its support to Russia as Western nations condemned the latter’s invasion of Ukraine. On the other, signs of continued price pressures in the United States suggest the US Federal Reserve (Fed) will continue with its monetary tightening for longer than previously expected.
XAU/USD stays afloat ahead of Fed’s document as stock traders decided to fight back. US indexes pared their weekly slump, and trade mixed around their opening levels. Meanwhile, US Treasury yields retain a soft tone, down for the day and helping to limit the US Dollar's bullish potential in the near term.
XAU/USD price short-term technical outlook
The XAU/USD pair trades near a weekly low of $1,830.22, partially losing its bearish strength but still at risk of falling. The daily chart shows that the pair keeps developing below a firmly bearish 20 Simple Moving Average (SMA) while above the longer ones. Technical indicators, in the meantime, hold within negative levels without clear directional strength.
In the near term and according to the 4-hour chart, XAU/USD is neutral-to-bearish. The pair is quickly retreating on spikes above a flat 20 SMA since early Tuesday. At the same time, the pair stands below a firmly bearish 100 SMA, which currently hovers around $1,869.00. Finally, technical indicators stand directionless just below their midlines, skewing the risk to the downside, although without confirming it.
Support levels: 1,824.60 1,811.30 1,797.45
Resistance levels: 1,838.90 1,854.00 1,870.50
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.