XAU/USD

Gold remains at the front foot and edges higher in early Monday, extending recovery into third straight day.

The yellow metal regained ground after last week’s sharp fall, boosted by growing signals that the Fed may opt for 50 basis points rate hike in September.

Weak US economic data warn of worse than expected scenario, with last week’s talks of US economy entering recession (after Fed’s long-lasting calming signals of soft landing) sparking panic in the market.

Although the situation is calmer now, investors remain cautious.

Markets await release of US inflation report for July, which is expected to shed more light on Fed’s next steps on monetary policy.

The metal price is also supported by geopolitical tensions, which adds to overall positive outlook.

Technical studies on daily chart are in full bullish setup and contribute to positive picture, as fresh push higher on Monday broke above Fibo 61.8% of $2483/$2353 ($2433), with close above this level to add to bullish signals.

However, markets are likely to move at a slower pace ahead of release of US CPI data.

Next targets lay at $2452 (Fibo 76.4%), $2477 (Aug 2 spike high), guarding new all-time high at $2483.

Rising 10DMA ($2422) and broken Fibo 50%) mark solid supports which should keep the downside protected and maintain bullish structure.

Res: 2452; 2462; 2477; 2483.
Sup: 2433; 2422; 2418; 2403.

Chart

Interested in XAU/USD technicals? Check out the key levels

    1. R3 2460.01
    2. R2 2448.56
    3. R1 2439.9
  1. PP 2428.45
    1. S1 2419.79
    2. S2 2408.34
    3. S3 2399.68

 

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD holds steady near 0.6250 ahead of RBA Minutes

AUD/USD holds steady near 0.6250 ahead of RBA Minutes

The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Tuesday for some insight into the interest rate outlook.

AUD/USD News
USD/JPY consolidates around 156.50 area; bullish bias remains

USD/JPY consolidates around 156.50 area; bullish bias remains

USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY. 

USD/JPY News
Gold price bulls seem non-committed around $2,620 amid mixed cues

Gold price bulls seem non-committed around $2,620 amid mixed cues

Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.

Gold News
Week ahead: No festive cheer for the markets after hawkish Fed

Week ahead: No festive cheer for the markets after hawkish Fed

US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.

Read more
Bank of England stays on hold, but a dovish front is building

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.

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