XAU/USD Current Price Analysis: A Look at Gold’s Resilience
- The Impact of Federal Reserve’s Interest Rate Cut on XAU/USD
- Bank of Japan’s Monetary Policy Decision on the Horizon
- XAU/USD’s Path to $2,600 and Beyond
Spot Gold has shown resilience and a bullish tone, reaching $2,594.75 per troy ounce and currently trading around $2,590 mid-American session. The recent decision by the Federal Reserve to cut interest rates by 50 basis points has put the US Dollar in a bearish position, boosting optimism in stock markets and weakening the demand for the USD.
Chairman Jerome Powell’s cautious message following the Fed’s decision has kept investors on their toes, with future actions dependent on upcoming data. Encouraging US economic data, such as the Q2 Current Account and improved Initial Jobless Claims, provided temporary support to the USD. However, the focus now shifts to the Bank of Japan’s upcoming monetary policy announcement, which could impact Gold prices.
XAU/USD Short-Term Technical Outlook
XAU/USD is poised to retest recent highs and potentially extend gains, supported by strong technical indicators in the daily chart. The 20 Simple Moving Average (SMA) acts as dynamic support around $2,527, while the 4-hour chart shows positive technical readings with limited upward strength near recent peaks. Support and resistance levels for XAU/USD are as follows:
- Support Levels: $2,574.80, $2,561.65, $2,550.00
- Resistance Levels: $2,605.00, $2,620.00, $2,640.00
Overall, XAU/USD remains on a positive trajectory, fueled by market optimism and a weakening US Dollar. Investors should keep an eye on upcoming events, such as the Bank of Japan’s monetary policy decision, to gauge potential market volatility and its impact on Gold prices.