- Gold price is sustaining below $1,700.00 as the DXY has strengthened further.
- The DXY has printed a fresh two-decade high at 1106.65 on robust US ISM Services PMI data.
- The precious metal may find support at around $1,680.00.
Gold price (XAU/USD) has displayed a vertical downside move in the Asian session and has printed a fresh four-day low below $1,693.00. The precious metal sensed a sheer downside momentum after delivering a downside break formed the consolidation formed in a narrow range of $1,700.00-1,704.08. The yellow metal is expected to display more weakness as the US dollar index (DXY) is picking bids ahead of the speech from Federal Reserve (Fed) chair Jerome Powell, scheduled for Thursday.
Price pressures in the US economy, last recorded at 8.5% for July, indicated that the inflation rate has topped now and the downside cycle has initiated. However, the whooping figure of 8.5% has widely deviated from the desired rate of 2%. Therefore, the Fed cannot halt the rate hike cycle till the price rise index display a meaningful downside.
Meanwhile, the US dollar index has refreshed its two-decade high at 110.65. As the US economic indicators are delighting the Federal Reserve (Fed) and are providing them room for escalating the interest rates further, the DXY is marching higher. On Thursday, investors should brace for a hawkish stance on interest rates by Fed chair Jerome Powell.
Gold technical analysis
Gold prices are plummeting and may find a cushion around July 21 low at $1,680.90. The 50-period Exponential Moving Average (EMA) at $1,717.65 has acted as major resistance for the counter. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals a continuation of downside momentum.
Gold four-hour chart
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 holds losses below 1.1400 amid US Dollar recovery
EUR/USD remains pressured below 1.1400 in the European trading hours on Tuesday. The Euro weakens amid rising expectations of further ECB interest rate cuts while the US Dollar draws support from some progress on US trade deals with its major global trading partners. US jobs data awaited.
GBP/USD retreats to near 1.3400 ahead of BoE’s Ramsden speech
GBP/USD is holding its pullback from three-year highs of 1.3445 early Tuesday, pressured by a modest US Dollar rebound and a cautious market mood. Investors look to BoE policymaker Ramsden's speech and US jobs and consumer sentiment data for fresh trading impetus.
Gold price slides back closer to $3,300 amid tariff deals optimism
Gold price drifts lower as signs of easing US-China trade tensions undermine safe-haven demand. The USD reverses a part of the overnight slide and exerts additional pressure on the XAU/USD pair. Fed rate cut bets might cap the USD and help limit losses for the commodity amid geopolitical risks.
Top gainers Virtuals Protocol, Floki, Hyperliquid: Altcoins extend gains alongside Bitcoin
The cryptocurrency market sustains a market-wide bullish outlook, led by Bitcoin and select altcoins, including Virtuals Protocol, Floki, and Hyperliquid. Global markets continue to respond positively to the possibility of trade tensions de-escalation between the United States and China.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
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.