XAU/USD Current Price: $2,666.19
Key Events Impacting XAU/USD
- Former President Donald Trump Wins the 2024 Presidential Election
- The Federal Reserve to Announce Monetary Policy Decision on Thursday
- XAU/USD Trading Near Daily Low, Potential for Further Declines Despite Near-Term Conditions
In a historic election, Donald Trump secures victory as the 47th President of the United States, triggering significant market movements. The US Dollar surged, leading to Gold prices hitting a three-week low. XAU/USD is currently hovering near $2,652.29, showing continued downward momentum.
Trump’s win not only impacted the Greenback but also propelled US indices to record highs, while government bonds saw a sharp decline, pushing Treasury yields to multi-week peaks. The 2-year note offers 4.28%, with the 10-year note at 4.46%, maintaining the yield curve in a favorable position.
The focus now shifts to the upcoming Federal Reserve meeting where a 25 basis points interest rate cut is expected. Market participants eagerly await Chairman Jerome Powell’s comments on the potential economic impact of Trump’s return and the anticipated policy shifts.
XAU/USD Short-Term Technical Analysis
On the daily chart, XAU/USD displays strong bearish pressure with technical indicators indicating a continued downward trend. The pair breached the 20 Simple Moving Average (SMA) at $2,714, while the 100 and 200 SMAs suggest a possibility of bullish movements in the future.
Looking at the 4-hour chart, XAU/USD appears to have found a short-term bottom after dropping below key moving averages. While the 20 SMA is still above the 100 and 200 SMAs, the longer-term indicators show weakening upward momentum. Despite being oversold, technical indicators have started to stabilize.
Key Levels to Watch
Support Levels: $2,652.25, $2,638.00, $2,615.65
Resistance Levels: $2,686.70, $2,698.70, $2,714.90
Analysis:
The election of Donald Trump as President and the upcoming Federal Reserve meeting have significantly impacted XAU/USD and the broader financial markets. Trump’s victory led to a surge in the US Dollar and a decline in Gold prices, with potential implications for economic policies and market dynamics. The Federal Reserve’s decision on interest rates will provide further insights into the future market direction, shaping investment strategies and financial decisions.
Technical analysis of XAU/USD suggests a bearish trend in the short term, with key support and resistance levels indicating potential price movements. Understanding these factors is crucial for investors and traders to navigate the current market environment and make informed decisions.