XAU/USD Current price: 1,980.81

  • The US Core Consumer Price Index held steady at 4% YoY in November.
  • The Federal Reserve will announce its decision on monetary policy on Wednesday.
  • XAU/USD is poised to extend its decline in the near term, caution prevails ahead of Fed.

Gold prices changed little on Tuesday, with XAU/USD hovering around $1,980.00. The US Dollar started the day with a soft tone, as the better performance of Asian equities pushed investors away from the safe-haven currency. Still, investors were cautious about placing bets ahead of the release of the United States (US) Consumer Price Index (CPI). The report came as expected, with the monthly CPI up 0.1% and the annual one at 3.1%, slightly lower than the previous 3.2%. Finally, the core annual gauge was 4%, matching expectations and the October reading.

XAU/USD posted an intraday high of $1,996.68 as an immediate reaction to the news, but the Greenback quickly changed course and trimmed inflation-inspired losses. Investors are trying to anticipate the Federal Reserve (Fed) monetary policy move. The central bank will make an announcement on Wednesday, and investors expect it to keep rates on hold for a third consecutive meeting. What investors are looking for is a clue on when policymakers will reverse massive hikes and start cutting rates and by how much throughout 2024. Steady inflation partially weighed on rate-cut odds, spurring some near-term concerns and benefiting the USD.

XAU/USD short-term technical outlook

XAU/USD daily chart shows the pair trades within Monday’s range, unchanged from the Asian opening. Technical readings maintain the risk skewed to the downside, as selling interest was strong on an approach to the $2,000 threshold. Meanwhile, a mildly bullish 20 Simple Moving Average (SMA) stands well above the current level, while the 100 and 200 SMAs remain directionless, some $50 below the current level. Finally, technical indicators stand directionless right below their midlines.

The risk remains skewed to the downside in the near term, and according to the 4-hour chart. XAU/USD retreated from around a flat 200 SMA while the 20 SMA heads firmly south above it. Technical indicators, in the meantime, turned south within negative levels after correcting oversold conditions. The bright metal has room to extend its slump in the near term, although price action will likely remain limited ahead of the Fed’s announcement.

Support levels: 1,976.26 1,959.40 1,946.00

Resistance levels: 1,994.40 2,001.70 2,014.20

View Live Chart for XAU/USD  

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

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions

Gold price is reneweing record highs beyond $3,000 early Tuesday on intensifying geopolitical Middle East tensions. Israel resumes military operations against Hamas in Gaza after the group rejected US proposals for extending ceasefire. Further US-Iran tensions add to the latest leg up in the safe-haven Gold. 

Gold News
AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD trades with caution below 0.6400 amid MiIddle East tensions

AUD/USD has paused its upsurge, trading with caution in Tuesday's Asian trading. Traders prefer to stay on the sidelines amid intensifying geopolitical risks in the Middle East, reducing the appeal of the higher-yielding Aussie. Meanwhile, the US Dollar finds its feet due to risk aversion. 

AUD/USD News
USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 as US Dollar finds demand

USD/JPY sits at two-week high near 149.50 in the Asian session on Tuesday as renewed Middle East geopolitical jitters revive the safe-haven demand for the US Dollar. However, further upside appears elusive amid divergent BoJ-Fed expectations and rising trade tensions. 

USD/JPY News
Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana price faces 50-day resistance as SOL futures debut on CME Group with $5M volume on fifth anniversary

Solana stagnated around the $128 mark on Monday despite multiple bullish catalysts. The recent SOL unlocks by Alameda Research, ahead of FTX creditor repayments, have created a persistent bearish overhang since early March.

Read more
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme

Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium

Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.  

Read more
The Best brokers to trade EUR/USD

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.

Read More

Majors

Cryptocurrencies

Signatures

Best Brokers of 2025