XAU/USD Price Analysis: How US Data Impacted Gold Market
- Financial markets relieved as US data eases recession fears.
- Stock markets soar with optimism, US indexes hit fresh weekly highs.
- XAU/USD holding steady, buyers seizing opportunities on dips.
Spot Gold sees modest gains in the American afternoon after early volatility. XAU/USD dropped to $2,432.04 before Wall Street opened, following positive US data that diverted attention from the safe-haven metal. The news of a 1% increase in US Retail Sales in July and lower than expected Initial Jobless Claims in the week ending August 9 boosted the US Dollar and stock markets, alleviating recession fears and maintaining Fed rate cut expectations.
On the technical side, XAU/USD remains within familiar levels, showing a lower high and low on the daily chart. However, technical indicators, while slightly lower, still remain positive, suggesting limited downside potential. The pair is trading above its moving averages, with the 20 SMA flat above the bullish 100 and 200 SMAs, reducing the likelihood of a significant decline.
XAU/USD Short-Term Technical Analysis
On the 4-hour chart, XAU/USD is neutral-to-bullish with technical indicators pointing higher around their midlines. The 20 SMA acts as dynamic resistance, while longer moving averages maintain modest upward slopes below the current level. Buyers are defending the downside near the 23.6% Fibonacci retracement level of the June/July rally at $2,438.80.
Support Levels: $2,438.80, $2,426.90, $2,438.80
Resistance Levels: $2,471.10, $2,483.70, $2,495.00