XAU/USD Price Analysis: Gold Stabilizes Below $2,400 as Market Mood Improves
- BOJ Governor’s Comments Bring Stability to Financial Markets
- Investors Keep a Close Eye on Federal Reserve’s Future Actions
- XAU/USD Continues to Trade Below $2,400 with Limited Directional Strength
Spot Gold remains steady just under the $2,400 mark, with the US Dollar losing traction amidst a more positive market sentiment. XAU/USD is currently hovering near its daily opening at $2,390.34 as traders weigh the latest developments.
The Bank of Japan’s Deputy Governor, Shinichi Uchida, reassured investors by stating that interest rates would not be raised if global markets remained shaky, easing concerns of an imminent hike. This news helped stabilize the Japanese Yen after a recent rally following a rate increase by the BOJ. Meanwhile, market participants are closely monitoring the US Federal Reserve amid growing worries about economic growth and potential rate cuts.
XAU/USD Technical Outlook
Gold is expected to remain resilient in the face of uncertainty, with technical indicators showing a neutral to slightly negative outlook in the short term. The pair is currently trading below a key resistance level at $2,411.20, with support levels at $2,385.00 and $2,372.90. The longer-term moving averages continue to support a bullish bias, suggesting potential upside momentum.
On the 4-hour chart, XAU/USD is in a neutral phase, with the 20 SMA indicating a bearish trend. The 200 SMA acts as dynamic support around $2,385.00, while resistance levels are seen at $2,411.20 and $2,424.10.
Overall, the current market conditions point to a cautious stance on XAU/USD, with potential for both upside and downside movements depending on key support and resistance levels.