- Gold stays on the front foot, keeps Fed-led gains near the weekly top.
- Fed reiterated cautious optimism, Powell rejects tapering talks.
- Mixed updates over covid, vaccine and stimulus trouble bulls.
- Biden’s first speech to join Congress, US Q1 GDP will be the key.
Gold buyers extend post-Fed gains to $1,783, up 0.10% intraday, during the initial Asian session on Thursday. The US Federal Reserve’s (Fed) moves, actually inaction, dragged down the greenback and backed the bright metals heaviest jump in a week the previous day. The quote’s latest moves seem to take clues from the cautious optimism concerning US President Joe Biden’s speech.
After Fed, Biden and US GDP are in focus…
Fed matched the wide market forecast of another status-quo during Wednesday. Even so, the US central bank praised economic recovery to keep buyers hopeful. It should, however, be noted that the US dollar index (DXY) dropped heavily afterward as Fed’s Powell said, “It’s not the right time” to talk tapering.
Elsewhere, the coronavirus (COVID-19) woes are gaining momentum in Asia while the uneven vaccinations in the West and fresh doubts over the AstraZeneca vaccine add to the market fears.
Against this backdrop, Wall Street benchmarks and the US 10-year Treasury yield flashed mild losses by the end of Wednesday whereas DXY refreshed a two-month low. Even so, the S&P 500 Futures rise 0.06% by the press time.
Moving on, US President Biden’s speech at 01:00 GMT will be the key amid multiple barriers to tax hike and a $4.0 trillion stimulus proposal. Following that, the preliminary readings of US Q1 GDP will be the key. Above all, risk catalysts comprising the covid and vaccine updates, as well as geopolitical news, keep the driver’s seat.
Technical analysis
Although the weekly falling trend channel keeps gold sellers hopeful, the patterns support line near $1,760 can offer intermediate bounces. It should, however, be noted that the quote’s sustained run-up beyond the key hurdle around $1,786-88, comprising the upper line of the stated channel and the previous support line from March, should dampen the bearish sentiment, mainly portrayed by downbeat MACD and Momentum indicators.
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.