XAU/USD Price Analysis: Will Central Banks’ Decisions Impact Gold?
- Financial Markets on Edge Ahead of Central Banks’ Announcements
- Federal Reserve Likely to Signal September Rate Cut
- XAU/USD Showing Neutral-to-Bearish Signs, Key Support at $2,366
Spot Gold faced downward pressure after a period of consolidation below $2,400 as investors brace for key events this week. Asian stocks saw gains while European markets faltered, setting a mixed tone for US equities. Focus is now on upcoming earnings and central bank decisions, starting with the Bank of Japan on Wednesday, followed by the Federal Reserve and Bank of England later in the week.
Market expectations include a potential reduction in JGB purchases by the BoJ, signaling a September rate cut by the Fed, and a 25 bps rate decrease by the BoE. These factors are likely to impact XAU/USD in the near term.
XAU/USD Technical Analysis
The daily chart shows a bearish bias as XAU/USD trades below the 20 SMA and approaches the 61.8% Fibonacci retracement level at $2,366.30. Resistance is seen at $2,403.10. In the 4-hour chart, the pair is below the 20 SMA with support at $2,366.00. The RSI suggests a downside bias, but confirmation is needed.
Support: $2,366.30, $2,353.00, $2,339.65
Resistance: $2,388.25, $2,403.10, $2,418.15
Analysis:
Investors are cautious ahead of central bank decisions, which could impact gold prices. With the Fed likely to signal a rate cut in September, XAU/USD faces a neutral-to-bearish outlook. Key support at $2,366 will be crucial to watch. Traders should pay attention to technical levels and market sentiment for potential trading opportunities in the coming days.