Latest Update on XAU/USD Price: $2,505.91 – What You Need to Know
- US Dollar Weakens Due to Job Creation Data Revision
- FOMC to Release July Meeting Minutes – What to Expect
- XAU/USD Correction Continues, But Steeper Decline Unlikely
XAU/USD is experiencing slight losses on Wednesday as it trades within a narrow range. Despite briefly dropping below $2,500, ongoing pressure on the US Dollar has helped the pair recover from intraday losses.
Investors are eagerly anticipating insights from the Federal Open Market Committee (FOMC) Minutes. Following the July meeting, the Federal Reserve hinted at a more dovish stance, focusing on employment rather than inflation concerns. Chairman Jerome Powell’s mention of a potential rate cut in September has fueled expectations, which should be clarified in the upcoming Minutes.
A recent revision of Nonfarm Payrolls (NFP) revealed a significant discrepancy in job creation data, signaling a weaker US economy than initially reported. This news further supports the likelihood of an interest rate cut, keeping the USD under pressure.
XAU/USD Technical Analysis
The daily chart shows XAU/USD trading above key moving averages, with bullish indicators pointing towards a positive trend. While short-term corrections are possible, the overall outlook remains optimistic with limited downside potential.
On the 4-hour chart, XAU/USD is currently testing key support levels, with indicators suggesting a potential bounce back. A break below $2,500 could trigger further corrections, but a sustained rally is more likely in the near term.
Support Levels: 2,496.40, 2,485.10, 2,427.20
Resistance Levels: 2,510.00, 2,523.50, 2,535.00