XAU/USD Current price: $2,323.79
- Comments from Federal Reserve Chair Jerome Powell helped the market’s mood improve.
- The focus shifts to United States employment-related data, ADP report scheduled for Wednesday.
- XAU/USD trades with a soft tone, limited chances of a bearish extension in the near term.
Spot Gold holds to familiar levels on Tuesday, with XAU/USD now retreating from an intraday high of $2,336.72 to trade just above the $2,320 mark. The bright metal turned south as the mood somehow improved in the American session following comments from Federal Reserve (Fed) Chairman Jerome Powell. Powell participated in a monetary policy panel at the 2024 ECB Forum on Central Banking in Sintra and noted the disinflation trend shows “signs of resuming.” However, he also said that the labor market is still strong, and that policymakers need to see more data like the one they have been seeing recently.
Meanwhile, Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, also hit the wires in a different event and said he still thinks a soft landing is possible and that the ark of inflation is clearly down. As a result, stock markets trimmed most of their intraday losses, although Wall Street’s major indexes remain in the red. Nevertheless, decreased demand for safety weighed on Gold.
Speculative interest now focuses on United States (US) employment-related data. The country will release the Automatic Data Processing (ADP) Research Institute's monthly report on private sector job creation for June and Challenger Job Cuts for the same month on Wednesday. The ADP report is expected to show that the private sector added 160K new positions in June, slightly above the 152K added in May. The reports could confirm or deny the case presented by Chair Powell about the labor market still being tight.
XAU/USD short-term technical outlook shows
The daily chart for XAU/USD shows it hovers around a flat 20 Simple Moving Average (SMA) for a third consecutive day, while the longer moving averages keep heading north below the current level. A bullish 100 SMA provides dynamic support at around $2,261.50. Technical indicators, in the meantime, turned modestly lower at around their midlines, lacking clear directional strength.
In the near term, and according to the 4-hour chart, XAU/USD is bearish-to-neutral, as it rests above a flat 100 SMA, while the 20 SMA turned directionless just above the current level. At the same time, the Momentum indicator heads south right below its midline, while the Relative Strength Index (RSI) indicator consolidates at around 48.
Support levels: 2,319.00 2,308.30 2,293.50
Resistance levels: 2,337.00 2,345.20 2,354.60
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
AUD/USD: Immediately to the upside comes 0.6700
AUD/USD maintained its erratic performance on Tuesday, reversing part of Monday’s retracement, with the upside always capped by the 0.6700 zone ahead of key US data releases on Wednesday.
EUR/USD needs to clear the 200-day SMA for further gains
EUR/USD managed to extend its multi-session apathetic advance amidst the flattish price action in the Greenback and the majority of the risk-linked assets, all prior to the publication of key releases in the US docket on Wednesday.
Gold under mild selling pressure around $2,320
The precious metal now fades the initial uptick and trades with modest losses near the $2,320 zone per ounce troy in response to the data-driven bounce in the Greenback.
Ripple escrow unlocks one billion XRP on Monday as altcoin ranges above $0.47
Ripple (XRP) escrow unlocked 1 billion tokens on Monday as part of the planned unlock until January 2025. XRP hovers around $0.48 early on Tuesday, adding more than 1% to its value on the day.
From bold to boring
After a rollicking spring rally, gold has settled into a trading range that seems typical for a summertime slowdown. One indicator is now pointing toward a big surprise soon, however.