- Gold price is keeping its auction steadily above $1,980.00 amid the subdued USD Index.
- S&P500 futures have generated losses as investors are anxious ahead of quarterly results from giant technology stocks.
- Gold price is expected to display sheer weakness after a breakdown of immediate support plotted from $1,969.26.
Gold price (XAU/USD) is holding its auction above the critical support of $1,980.00 in the Asian session. The precious metal is struggling around $1,985.00 as the US Dollar Index (DXY) is showing mixed signals around its crucial support of 101.63. After topsy-turvy moves in a wide range of 101.63-102.27 for the past four trading sessions, investors are anticipating a decisive move from the USD Index.
S&P500 futures are holding onto losses in the Asian session as investors are anxious ahead of quarterly results from giant technology stocks. Amazon, Facebook, and Google are expected to keep investors busy this week with their first-quarter CY2023 results. The yields offered on US government bonds have dropped marginally amid a subdued performance by the US Dollar Index. The 10-year US Treasury yields have dropped to near 3.56%.
This week, the USD Index will dance to the tunes of Durable Goods Orders (March) data. The economic data is seen expanding by 0.8% vs. a contraction of 1.0%. A recovery in demand for Durable Goods indicates that households’ demand is recovering, which could further lift core inflation expectations. An upbeat economic data would be supportive to more rate hikes from the Federal Reserve (Fed).
Gold technical analysis
Gold price has delivered a breakdown of the Head and Shoulder chart pattern formed on a two-hour scale. The precious metal might display more weakness after slipping below the immediate support plotted from April 19 low at $1,969.26.
Declining 20-and 50-period Exponential Moving Averages (EMAs) at $1,988.00 and $1,994.78 respectively, add to the downside filters.
The downside momentum will get triggered if the Relative Strength Index (RSI) (14) will drop into the bearish range of 20.00-40.00.
Gold two-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 retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.