XAU/USD Current price: $2,027.49

  • US Treasury yields are on the rise, giving near-term support to the USD.
  • Investors are waiting for the US Core Personal Consumption Expenditures Price Index.
  • XAU/USD gains bearish traction in the near term, but not everything is lost for bulls.

Spot gold trades with a soft tone in the American session, extending its early decline to fresh intraday lows. The bright metal opened the week with a mild bearish gap but quickly filled it to stabilize around $2,035. XAU/USD currently trades below the $2,030 mark, as the US Dollar benefits from an increased caution.

Stock markets trade mixed, reflecting the wait-and-see mood. US indexes consolidate near record highs but fail to extend gains ahead of critical macroeconomic releases scheduled throughout the week. Attention centers around the US Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) favorite inflation gauge, after the unexpected uptick in the  January Consumer Price Index (CPI).

Meanwhile, the USD is finding additional support in raising US Treasury bond yields, up following auctions. The 10-year note currently offers 4.299% after falling to 4.217% earlier in the day.

XAU/USD short-term technical outlook

The daily chart for XAU/USD  shows decreasing buying interest. The bright metal seesaws around a flat 20 Simple Moving Average (SMA) as technical indicators turn lower around their midlines. The bright metal is still developing well above a bullish 100 SMA, while the 200 SMA lacks directional strength well below the latter, suggesting bulls still have the chance to resize control.

In the near term, and according to the 4-hour chart, however, the risk of a bearish extension increased. Technical indicators gain downward momentum below their midlines, while the pair is currently developing below its 20 SMA while struggling to retain ground above a directionless 200 SMA. The bearish case will be firmer if XAU/USD extends its slide through 2,019.60, the immediate support level.

 Support levels: 2,019.60 2,011.40 1,995.35  

Resistance levels: 2,032.50 2,045.20 2,064.90

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

GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision

GBP/USD holds recovery gains above 1.2900 ahead of BoE policy decision

GBP/USD builds its recovery momentum above 1.2900 in European trading on Thursday, moving away from its lowest level since mid-August. Traders adjust their positions ahead of the key BoE and Fed monetary policy announcements. 

GBP/USD News
EUR/USD stays firm near 1.0750 amid US Dollar pullback

EUR/USD stays firm near 1.0750 amid US Dollar pullback

EUR/USD holds higher ground near 1.0750 in the European session on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trunp win-inspired USD longs ahead of all-important Fed policy announcements. 

EUR/USD News
Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision

Gold price faces challenges due to decline in safe-haven flows, awaits Fed rate decision

Gold price (XAU/USD) faced challenges as the dollar-denominated precious metals struggled due to a stronger US Dollar (USD) following the victory of former President Donald Trump in the US election.

Gold News
BoE set for a second interest rate cut this year on Thursday

BoE set for a second interest rate cut this year on Thursday

Market consensus points to further easing by the Bank of England's (BoE) upcoming interest rate decision on Thursday. The BoE has held rates steady at 5.00% in the previous gathering, but shifting investor sentiment now suggests a possible 25-basis-point cut this week.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

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