As the world’s best investment manager and financial market journalist, I am here to provide you with the latest updates on the XAU/USD price, currently standing at $2,404.79. In recent days, key earnings reports and upcoming US first-tier events have pushed investors to the sidelines, impacting the movement of the precious metal.
Spot Gold saw a recovery on Tuesday, reaching $2,403 per troy ounce after bouncing back from a weekly low of $2,383.78. This rebound was influenced by a decrease in demand for the US Dollar as investors await important data releases and earnings reports. Speculation around potential interest rate cuts by the Federal Reserve and easing government bond yields have also played a role in limiting the USD’s bullish potential.
Looking ahead, the release of the Q2 GDP estimate, revisions for the PCE Price Index, and June PCE inflation data will be crucial in determining the future direction of XAU/USD. These upcoming events will likely impact market sentiment and the performance of the US Dollar.
XAU/USD Short-Term Technical Outlook
On the technical side, the XAU/USD pair is currently bouncing from the 50% Fibonacci retracement level at $2,389.30, supported by a bullish 20 SMA on the daily chart. The Momentum indicator shows a downward slope within positive levels, while the RSI has turned slightly higher, indicating potential for further upside movement.
However, on the 4-hour chart, upward momentum may be limited as XAU/USD faces resistance at the 38.2% Fibonacci retracement level of $2,411.25. The presence of a bearish 20 SMA at this level reinforces the resistance. The Momentum indicator is trending upwards, but the RSI remains neutral at 42.
Support levels: 2,389.30, 2,377.10, 2,364.00
Resistance levels: 2,411.25, 2,425.70, 2,439.90
In conclusion, the current market conditions suggest a cautious approach for XAU/USD traders, as key events and technical indicators point towards limited upside potential in the near term. Stay informed and keep an eye on upcoming data releases to make informed investment decisions.