- Gold price is comfortably shifted above 2,020.00 amid rising bets for a steady Fed monetary policy.
- A slowdown in the hiring process by US firms has scaled expectations of an unchanged Fed policy towards north.
- Gold price is marching towards the horizontal resistance plotted from 08 March 2022 high at $2,070.54.
Gold price (XAU/USD) has shifted its auction profile comfortably above $2,020.00 in the early Asian session. The precious metal delivered a decisive break above the psychological resistance of $2,000.00 on Tuesday after the release of weak Job Openings data confirmed that the United States labor market is cooling-off and the Federal Reserve (Fed) would prefer to adopt a neutral stance on interest rates.
As per the CME Fedwatch tool, the chances of an unchanged policy have scaled near 59%.
The US Dollar Index (DXY) has refreshed its monthly low at 101.45 and more losses are in pipeline as policy divergence of the Fed with central banks would trim ahead. Meanwhile, S&P500 futures are adding gains in early Tokyo after a negative Tuesday, indicating a recovery in the risk-taking capacity of the market participants.
Investors will keep an eye on oil prices, as the only measure, which could impact the upside rally in the Gold price. Higher oil prices would stimulate global inflation as factory owners would pass on the impact of costly oil to end users. This could trigger some recovery in expectations for the continuation of a policy-tightening spell by the Fed.
Going forward, US Employment and ISM Services PMI data will remain in the spotlight. According to the consensus, the US economy has added fresh 200K jobs in March than the former additions of 242K.
Gold technical analysis
Gold price is marching towards the horizontal resistance plotted from the 08 March 2022 high at $2,070.54 on a daily scale. Intermediate support is placed from March 20 high at $2,009.88.
Upward-sloping 10-and 20-period Exponential Moving Averages (EMAs) at $1,984.00 and $1,956.12 respectively, indicate that the bullish momentum is extremely strong.
The Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, showing active upside momentum.
Gold daily 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
AUD/USD faces potential extra gains near term
Further weakness in the US Dollar allowed AUD/USD to rapidly forget Friday’s pullback and resume the uptrend well north of 0.6700 the figure amidst quite an auspicious start to the new trading week.
EUR/USD now retargets the 1.1150 region
EUR/USD managed to regain upside impulse and break above the 1.1100 barrier to print new multi-day peaks on the back of increasing downward pressure in the Greenback ahead of the key FOMC meeting.
Gold consolidates gains near fresh all-time highs
Gold trades in a narrow range above $2,580 after touching a new record-high near $2,590 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 3.6% ahead of the Fed meeting and makes it difficult for XAU/USD to find direction.
MicroStrategy plans to buy additional Bitcoin following $700 million convertible notes sale
MicroStrategy plans to increase its Bitcoin holdings after announcing a $700 million convertible senior notes offering on Monday. The announcement follows its $1.11 billion Bitcoin purchase a few days ago.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.