XAU/USD Analysis: Current Price at $2,487.45 – What to Expect Next?
- Weaker US economic data and upcoming employment numbers causing market caution.
- Investors eagerly await clues on Federal Reserve’s next move.
- XAU/USD likely to continue downward trend, facing resistance at $2,500.
The US Dollar saw a surge in demand as investors turned risk-averse due to disappointing US economic data, pushing XAU/USD down towards $2,470. S&P Global’s final US Manufacturing PMI for August was revised downward to 47.9, while the official ISM Manufacturing PMI for the same month came in at 47.2, missing expectations. The employment sub-index improved, but the New Orders Index fell, and the Prices Paid Index rose, indicating inflation pressure.
Weaker US data has left investors cautious ahead of the upcoming Nonfarm Payrolls (NFP) report on Friday, which could provide insight into the Fed’s future rate decisions. The market expects a rate cut, but the extent of the cut remains uncertain.
XAU/USD Technical Analysis
On the daily chart, XAU/USD is on a three-day decline but lacks clear bearish confirmation. Gold is struggling to stay above the 20 Simple Moving Average at $2,485, with the 100 SMA showing some weakening bullish momentum. Technical indicators suggest a neutral-to-bearish outlook.
In the short term, the 4-hour chart points to further downside potential, with XAU/USD below both the 20 and 100 SMA. Technical indicators indicate bearish momentum, and failure to break above $2,500 could lead to further declines.
Support Levels: $2,475.70, $2,463.40, $2,451.35
Resistance Levels: $2,389.60, $2,507.40, $2,519.75