- Gold price takes offers to reverse the previous day’s corrective bounce off one-week low.
- Geopolitical challenges to sentiment, mixed US data joins month-end positioning to recall US Dollar buyers.
- XAU/USD’s U-turn from previous support, failure to cross SMA confluence keeps bears hopeful.
- Headlines surrounding inflation, banking become necessary for fresh impetus on Gold price.
Gold price (XAU/USD) renews its intraday low around $1,960 as it reverses the previous day’s corrective bounce amid early Wednesday in Europe.
The precious metal’s latest losses could be linked to the US Dollar’s rebound amid fresh challenges to the risk appetite emanating from China. However, a sluggish trading session and a light calendar prod the Gold bears of late.
The US blacklisting of Chinese companies and Beijing’s dislike of a meeting between the White House Speak and the Taiwan President can be considered the key catalysts to challenge the previously firmer sentiment and allow the US Dollar to snap a two-day downtrend. Adding strength to the greenback are the two-week high US inflation expectations, per the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED).
On the contrary, a successful divergence of the markets from the banking fallouts, policymakers’ efforts to defend their respective banking system and the central banks’ confirmations that the financial crisis is off the table seems to keep the traders optimistic.
It’s worth observing, however, that the inflation woes highlight the upcoming price pressure data from Europe and the US as this week’s key catalysts for the XAU/USD.
While portraying the mood, the S&P 500 Futures rise half a percent to 4,010 as it prints the first daily gains in three whereas the US 10-year and two-year Treasury bond yields print a three-day uptrend around 3.58% and 4.10% respectively.
To sum up, a light calendar on Wednesday may allow the Gold price to justify the downbeat technical signals and please sellers. Though, headlines about inflation and banking will be crucial to watch for clear directions.
Technical analysis
Gold price extends the previous day’s U-turn from a two-week-long support-turned-resistance, around $1,981 by the press time, to slip beneath a convergence of the 21-SMA and 50-SMA.
Not only the failure to cross the key hurdles but the previous reversals from $2,005 and steady RSI (14) also keep Gold bears hopeful.
That said, the recent low of around $1,945 can act as immediate support for the XAU/USD bears to prod before jostling with the key horizontal line surrounding $1,930.
Alternatively, the aforementioned SMA confluence of around $1,970 guards the Gold price recovery ahead of the previous support line close to $1,981.
It’s worth noting that the Gold buyers should remain cautious unless the quote stays beneath a two-week-old horizontal hurdle of near $2,005.
Overall, the Gold price remains well-set for further downside but there prevails a limited room towards the south.
Gold price: Four-hour chart
Trend: Limited downside expected
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 remains near 1.0400 post-US PCE
The US Dollar’s inconclusive price action allows some recovery in EUR/USD, keeping the pair around the 1.0400 region following the release of PCE inflation data for the month of January.

Gold slumps to fresh multi-week lows below $2,840
Gold stays under bearish pressure and trades at its lowest level in three weeks below $2,840. The uncertainty surrounding the Trump administration's trade policy and month-end flows seem to be weighing on XAU/USD, which remains on track to snap an eight-week winning streak.

GBP/USD clings to gains just above 1.2600 after PCE data
GBP/USD remains positively oriented in the 1.2600 neighbourhood as the Greenback is navigating a vacillating range following the PCE inflation release.

The week ahead – US Payrolls, ECB rate meeting, ITV results – W/c 3rd March
Having seen the Federal Reserve keep rates on hold last month the US labour market continues to show remarkable resilience, despite seeing a slowdown in hiring in January, after a blow out December number.

Weekly focus – Tariff fears are back on the agenda
While the timing of the EU measures remains still uncertain, Trump surprised markets on Thursday by signalling that the 25% tariffs on Canada and Mexico will be enacted when the one-month delay runs out next Tuesday.

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.