Gold Price Forecast: XAU/USD retreats further from two-week highs after US ISM Service PMI


  • US Service sector data surpass expectations, no significant surprises.
  • Treasury yields rebound from daily lows.
  • XAU/USD retreats further from two-week highs, tests $1,840.

Gold prices weakened after the US data, however remained positive for the day and the week. XAU/USD fell to the $1,840/oz area, pulling back from the two-week high it hit earlier near $1,850.

US ISM Services PMI shows numbers above expectations

The ISM Services PMI came in at 55.1 in February, above the 54.5 expected and slightly under the 55.2 of January. The Prices Paid Index pulled back from 67.8 to 65.5, above the 64.5 of market consensus. Ahead of the NFP week, the Employment Index jumped to 54, against expectations of a slide to 49.8.

Previously, the final reading of the US S&P Global Services PMI showed a positive revision from 50.5 of the flash estimate to 50.6.

The US Dollar edged higher following the report, turned positive versus the Euro and the NZD and trimmed losses versus the Pound and the Yen. US yields rebounded from daily lows. The US 10-year yield rose from 3.97% to 4.02%. 

XAU/USD dropped to as low as $1,840/oz, still holding in positive ground for the day. Gold continues to back away from the two-week high it hit earlier on Friday at $1,849.

On a daily basis, Gold is still up for the day but off highs. An intraday support emerges around $1,837. A break lower would expose the $1,830 area. On the upside, the key barrier remains the $1,845/$1,850 range.

Technical levels

XAU/USD

Overview
Today last price 1843.89
Today Daily Change 7.71
Today Daily Change % 0.42
Today daily open 1836.18
 
Trends
Daily SMA20 1844.18
Daily SMA50 1867.48
Daily SMA100 1798.78
Daily SMA200 1775.47
 
Levels
Previous Daily High 1839.02
Previous Daily Low 1830.01
Previous Weekly High 1847.59
Previous Weekly Low 1808.99
Previous Monthly High 1959.8
Previous Monthly Low 1804.76
Daily Fibonacci 38.2% 1833.45
Daily Fibonacci 61.8% 1835.58
Daily Pivot Point S1 1831.12
Daily Pivot Point S2 1826.06
Daily Pivot Point S3 1822.11
Daily Pivot Point R1 1840.13
Daily Pivot Point R2 1844.08
Daily Pivot Point R3 1849.14

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower. 

EUR/USD News
GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD approaches 1.2500 on renewed USD strength

GBP/USD loses its traction and trades near 1.2500 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.

GBP/USD News
Gold drops to $2,620 area as US bond yields edge higher

Gold drops to $2,620 area as US bond yields edge higher

Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.

Gold News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025. 

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

Forex MAJORS

Cryptocurrencies

Signatures