- The gold price has moved higher on hawkish Fed policymakers.
- EU leaders summit and Biden meeting with its NATO counterparts will remain in focus.
- Gold bulls are firmer above 21 EMA.
Update: Gold (XAU/USD) pares the biggest daily gains in 12 days around $1,941 during the mid-Asian session on Thursday.
The yellow metal cheered the US Treasury yields retreat from three-year high the previous day to print notable gains. However, the bond coupons recover, underpinning the US dollar strength, amid the market’s anxiety ahead of the key data/events.
That said, S&P 500 Futures seesaws between gains and losses, up 0.11% intraday around 4,452 by the press time while the US 10-year Treasury yields retreated from a three-year high to 2.30% before regaining a 2.33% level at the latest.
The latest hawkish Fedspeak highlights the US PMIs for March and Durable Goods Orders for February. Also, the Ukraine-Russia tensions and the US readiness to slap more sanctions on Moscow emphasize President Biden’s meeting with the North Atlantic Treaty Organization (NATO) allies in Europe.
Additionally, China’s covid update and fears emanating from the Middle East also can challenge the gold prices on a key day.
End of update.
Gold (XAU/USD) was juggling in a narrow range of $1,911.10-1,941.56 since the last week but now seems to come out of the woods and rally further despite headwinds of hawkish stance from the Federal Reserve (Fed)’s policymakers.
The precious metal seems underpinned by the market participants despite the rising odds of a 50 basis point (bps) interest rate hike by the Fed. San Francisco Fed Bank President Mary Daly in her speech on Wednesday claimed that interest rates may settle around 2.5%, which will be required to corner the soaring inflation while Cleveland Fed Bank President Loretta Mester favored 50 bps interest rate hikes by the Fed more than once by the end of 2022. It looks like the aggressive tightening stance from the Fed members has failed to tighten the gold prices.
The US dollar index (DXY) has been stuck near 98.50 and awaits a fresh wave in the risk-aversion theme for attracting bids. Meanwhile, the 10-year US Treasury yields have sensed minor weakness from its fresh two-year high at 2.42%.
Going forward, the economic calendar is full of mega-events on Thursday. US docket will reveal Initial Jobless Claims, Durable Goods Orders, and Markit (Manufacturing and Services) PMI on Thursday. However, the spotlight will remain on the EU leaders summit to discuss the embargo on Russian oil and US President Joe Biden meeting with his NATO counterparts to discuss the Russia-Ukraine tensions and approach for a diplomatic solution.
Gold Technical Analysis
XAU/USD has given a breakout of the falling channel, which has sent the gold prices near $1,945. The upper end of the falling channel is placed from March 17 high at $1,949.80 while the lower end is marked from March 18 low at $1,918.21. The Relative Strength Index (RSI) (14) is oscillating in a range of 60.00-80.00, which signals for the continuation of a bullish trend. The 21-period Exponential Moving Average (EMA) at $1,937.15 will act as major support for the counter.
Gold hourly chart
-637836820301215845.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
AUD/USD: A challenge of the 2025 peaks looms closer
AUD/USD rose further, coming closer to the key resistance zone around 0.6400 despite the strong rebound in the Greenback and the mixed performance in the risk-associated universe. The pair’s solid price action was also propped up by a firm jobs report in Oz.
EUR/USD: Extra gains likely above 1.1400
EUR/USD came under renewed downside pressure following another bull run to the 1.1400 region on Thursday. The knee-jerk in spot came in response to the decent bounce in the US Dollar, while the dovish tone from the ECB’s Lagarde seems to have also contributed to the bearish developments in the pair.
Gold bounces off daily lows, back near $3,320
The prevailing risk-on mood among traders challenges the metal’s recent gains and prompts a modest knee-jerk in its prices on Thursday. After bottoming out near the $3,280 zone per troy ounce, Gold prices are now reclaiming the $3,320 area in spite of the stronger Greenback.
Canada launches world's first Solana ETF as $270M in staking deposits propel SOL price above BTC and ETH
Solana price jumps on Thursday as Canadian firm launches the world’s first SOL ETF, fueling bullish sentiment alongside $270 million in new staking deposits this week.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
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.