XAU/USD Analysis: A Comprehensive Look at the Current Price and Market Conditions

Key Points:

  • US Dollar Correction: Mixed data and Fed speakers have led to a correction in the US Dollar, allowing XAU/USD to make a corrective advance.
  • Central Banks in Focus: Federal Reserve officials, including Chairman Jerome Powell, ECB President Christine Lagarde, and BoE Governor Andrew Bailey, will provide insights on monetary policy and future decisions.
  • Technical Outlook: The daily and 4-hour charts for XAU/USD indicate potential for continued upward movement in the near term.

Spot Gold is currently trading around $2,575 per troy ounce, recovering from a recent low of $2,536.68. The US Dollar saw strength in early trading but has since corrected, allowing XAU/USD to see gains.

US economic data showed mixed results, with Initial Jobless Claims beating expectations but the PPI raising concerns about inflation. Fed officials have provided limited new insights on monetary policy, with Chairman Powell’s upcoming remarks being closely watched for any hints on future decisions.

Looking at technical indicators, the daily chart shows XAU/USD bouncing from the 100 SMA but below the 20 SMA. On the 4-hour chart, indicators point to further upward movement, with resistance around $2,594.20 and support at $2,548.70.

Support and Resistance Levels:

  • Support: 2,548.70, 2,536.60, 2,522.40
  • Resistance: 2,581.35, 2,594.20, 2,611.05
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