- XAU/USD is juggling in a range of $1,915.78-1,949.86 amid mixed market mood.
- Russia-Ukraine peace talks look de-escalated as Ukraine accused Russia for the death of civilians.
- The DXY is scaling higher on lower US Jobless rate, ahead of US Services PMIs.
Update: Gold price is testing bids in the $1,930 neighborhood, as mounting tensions between the West and Russia over the atrocities in Ukraine keep the US dollar’s haven demand intact. The downside, however, appears cushioned in the bright metal, as the US Treasury yields remain weak across the curve amid increased risk-off flows into the American government bonds. Investors weigh in on aggressive Fed’s tightening plans after a healthy US labor market report released last Friday.
Attention now turns towards the US ISM and S&P Global Services PMIs while speeches from Fed officials will be also closely followed. The UN Security Council meeting due later this Tuesday will also hog the limelight, in which Ukrainian President Volodymyr Zelenskyy is due to speak amid the heightening Russia-Ukraine crisis.
Read: Gold serves as wildcard in this high-stakes currency matchup
Gold (XAU/USD) is oscillating in a range of $1,915.78-1,949.86 from the last three trading sessions amid positive market sentiment. The digestion of worst-case scenarios amid Russia’s invasion of Ukraine by the market participants has kept the tone of the market favorable. The precious metal is trading lackluster and is looking for a trigger to find direction.
A progress in the Russia-Ukraine peace talks was clearly witnessed by investors after the discussions over the major stipulations to be printed in a special document of ceasefire. Also, the month-long military activity of Russian rebels in Ukraine was indicating that Russia might be out of military equipment, liquidity and resources soon, which will force it to approach a ceasefire. However, the allegation from Ukraine President Volodymyr Zelenskyy on Russia over the death of civilians by the Russian forces in Bucha, Ukraine has stretched the ceasefire expectations.
Meanwhile, the US dollar index (DXY) has reclaimed 99.00 on expectation of strong US Services PMI on Tuesday. A preliminary estimate for the US Services PMI is 58 against the prior print of 56.5. Also, the odds of a jumbo interest rate hike have increased sharply after the upbeat Unemployment Rate. The US Jobless rate at 3.6% and its consistency below 4% is bracing a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed). Strong labor market amid achievement of full employment levels is hoping an aggressively tight monetary policy in May. Also, the US Treasury yields are balanced in a limited range. The 10-year benchmark US Treasury yields is trading close to 2.4% and is expecting to witness higher levels going forward.
This week, the minutes from the Federal Open Market Committee (FOMC) will remain the major event for the FX domain. The FOMC minutes will dictate the strategy behind advocating the 25 bps hike interest rate decision by the Fed.
Gold Technical analysis
On an hourly scale, XAU/USD is oscillating in a diamond pattern that signals a bullish reversal after a steep fall. The formation indicates inventory adjustment in which the inventory is shifted from retail participants to institutional investors. The 20- and 50-period Exponential Moving Averages (EMAs) near $1,930 are overlapping to each other, which signal a consolidation ahead. Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates a lackluster performance.
Gold Hourly chart
-637847090739651262.png)
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
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.