The gold price (XAU/USD) is trading with a bearish bias on Friday, retreating from the nearly $2,400 barrier. Earlier sessions saw a bullish move in precious metals, driven by softer-than-expected US inflation data for April, which fueled hopes for potential rate cuts from the US Federal Reserve (Fed). However, a cautious stance from Fed officials on Thursday, emphasizing the need to maintain high borrowing costs for an extended period, has dampened these expectations. Consequently, the US Dollar (USD) has strengthened, dragging the yellow metal lower as higher interest rates reduce overall investment demand for non-yielding assets like gold.
FED’S INFLUENCE AND MARKET REACTIONS
The recent decline in gold prices underscores the significant influence of the Fed’s monetary policy on market dynamics. Softer inflation data initially sparked optimism about potential rate cuts, which typically benefit gold by reducing the opportunity cost of holding non-yielding assets. However, the Fed’s reiterated commitment to keeping rates high has counteracted this optimism, reinforcing the USD’s strength and pressuring gold prices.
Market Focus Shifts to Fed Officials’ Speeches
With no major economic data releases from the US docket, market participants are keenly awaiting comments from several Fed officials, including Neel Kashkari, Christopher Waller, and Mary Daly, scheduled to speak later on Friday. Their remarks are expected to provide further insights into the Fed’s future monetary policy trajectory, which will likely influence gold prices and broader market sentiment.
TECHNICAL ANALYSIS: GOLD PRICE’S UPSIDE REMAINS INTACT
Gold prices (XAU/USD) are trading with a bearish bias today but maintain a constructive outlook according to the four-hour chart. Since May 2, the precious metal has formed an ascending trend channel, suggesting continued bullish sentiment as long as it remains above the 100-period Exponential Moving Average (EMA). Currently, gold stands in bullish territory around 62.00, indicating that the path of least resistance is to the upside.
KEY LEVELS AND RESISTANCE
The upper boundary of the ascending trend channel, along with the psychological barrier of $2,400, acts as a crucial resistance level. Breaking above this level could see gold making another attempt at its all-time high of $2,432, with the potential to reach the $2,500 round figure.
SUPPORT LEVELS AND DOWNSIDE RISKS
In a bearish scenario, the first level of support to watch is the lower limit of the ascending trend channel at $2,355. Should the price move further down, the next significant support is at the 100-period EMA at $2,340. Continued selling pressure below this level could drag XAU/USD back to $2,300.
US DOLLAR PERFORMANCE IN THE LAST 7 DAYS
The table below shows the percentage change of the US Dollar (USD) against major currencies over the past 7 days, with the USD showing the strongest performance against the Japanese Yen.
| Currency | Percentage Change |
|---|
| Japanese Yen | +2.3% |
| Euro | +1.1% |
| British Pound | +0.8% |
| Swiss Franc | +0.5% |
| Canadian Dollar | +0.3% |
| Australian Dollar | +0.2% |
| New Zealand Dollar | +0.1% |
CONCLUSION
While gold is currently trading on a negative note, its overall technical outlook remains bullish as long as it stays above key support levels. Investors should watch for a break above the $2,400 resistance to confirm a potential move towards higher targets, while closely monitoring support levels for any signs of a bearish reversal.
The gold price (XAU/USD) is trading with a bearish bias on Friday, retreating from the nearly $2,400 barrier. Earlier sessions saw a bullish move in precious metals, driven by softer-than-expected US inflation data for April, which fueled hopes for potential rate cuts from the US Federal Reserve (Fed). However, a cautious stance from Fed officials on Thursday, emphasizing the need to maintain high borrowing costs for an extended period, has dampened these expectations. Consequently, the US Dollar (USD) has strengthened, dragging the yellow metal lower as higher interest rates reduce overall investment demand for non-yielding assets like gold.
FED’S INFLUENCE AND MARKET REACTIONS
The recent decline in gold prices underscores the significant influence of the Fed’s monetary policy on market dynamics. Softer inflation data initially sparked optimism about potential rate cuts, which typically benefit gold by reducing the opportunity cost of holding non-yielding assets. However, the Fed’s reiterated commitment to keeping rates high has counteracted this optimism, reinforcing the USD’s strength and pressuring gold prices.
Market Focus Shifts to Fed Officials’ Speeches
With no major economic data releases from the US docket, market participants are keenly awaiting comments from several Fed officials, including Neel Kashkari, Christopher Waller, and Mary Daly, scheduled to speak later on Friday. Their remarks are expected to provide further insights into the Fed’s future monetary policy trajectory, which will likely influence gold prices and broader market sentiment.
TECHNICAL ANALYSIS: GOLD PRICE’S UPSIDE REMAINS INTACT
Gold prices (XAU/USD) are trading with a bearish bias today but maintain a constructive outlook according to the four-hour chart. Since May 2, the precious metal has formed an ascending trend channel, suggesting continued bullish sentiment as long as it remains above the 100-period Exponential Moving Average (EMA). Currently, gold stands in bullish territory around 62.00, indicating that the path of least resistance is to the upside.
KEY LEVELS AND RESISTANCE
The upper boundary of the ascending trend channel, along with the psychological barrier of $2,400, acts as a crucial resistance level. Breaking above this level could see gold making another attempt at its all-time high of $2,432, with the potential to reach the $2,500 round figure.
SUPPORT LEVELS AND DOWNSIDE RISKS
In a bearish scenario, the first level of support to watch is the lower limit of the ascending trend channel at $2,355. Should the price move further down, the next significant support is at the 100-period EMA at $2,340. Continued selling pressure below this level could drag XAU/USD back to $2,300.
US DOLLAR PERFORMANCE IN THE LAST 7 DAYS
The table below shows the percentage change of the US Dollar (USD) against major currencies over the past 7 days, with the USD showing the strongest performance against the Japanese Yen.
| Currency | Percentage Change |
|---|
| Japanese Yen | +2.3% |
| Euro | +1.1% |
| British Pound | +0.8% |
| Swiss Franc | +0.5% |
| Canadian Dollar | +0.3% |
| Australian Dollar | +0.2% |
| New Zealand Dollar | +0.1% |
CONCLUSION
While gold is currently trading on a negative note, its overall technical outlook remains bullish as long as it stays above key support levels. Investors should watch for a break above the $2,400 resistance to confirm a potential move towards higher targets, while closely monitoring support levels for any signs of a bearish reversal.
The gold price (XAU/USD) is trading with a bearish bias on Friday, retreating from the nearly $2,400 barrier. Earlier sessions saw a bullish move in precious metals, driven by softer-than-expected US inflation data for April, which fueled hopes for potential rate cuts from the US Federal Reserve (Fed). However, a cautious stance from Fed officials on Thursday, emphasizing the need to maintain high borrowing costs for an extended period, has dampened these expectations. Consequently, the US Dollar (USD) has strengthened, dragging the yellow metal lower as higher interest rates reduce overall investment demand for non-yielding assets like gold.
FED’S INFLUENCE AND MARKET REACTIONS
The recent decline in gold prices underscores the significant influence of the Fed’s monetary policy on market dynamics. Softer inflation data initially sparked optimism about potential rate cuts, which typically benefit gold by reducing the opportunity cost of holding non-yielding assets. However, the Fed’s reiterated commitment to keeping rates high has counteracted this optimism, reinforcing the USD’s strength and pressuring gold prices.
Market Focus Shifts to Fed Officials’ Speeches
With no major economic data releases from the US docket, market participants are keenly awaiting comments from several Fed officials, including Neel Kashkari, Christopher Waller, and Mary Daly, scheduled to speak later on Friday. Their remarks are expected to provide further insights into the Fed’s future monetary policy trajectory, which will likely influence gold prices and broader market sentiment.
TECHNICAL ANALYSIS: GOLD PRICE’S UPSIDE REMAINS INTACT
Gold prices (XAU/USD) are trading with a bearish bias today but maintain a constructive outlook according to the four-hour chart. Since May 2, the precious metal has formed an ascending trend channel, suggesting continued bullish sentiment as long as it remains above the 100-period Exponential Moving Average (EMA). Currently, gold stands in bullish territory around 62.00, indicating that the path of least resistance is to the upside.
KEY LEVELS AND RESISTANCE
The upper boundary of the ascending trend channel, along with the psychological barrier of $2,400, acts as a crucial resistance level. Breaking above this level could see gold making another attempt at its all-time high of $2,432, with the potential to reach the $2,500 round figure.
SUPPORT LEVELS AND DOWNSIDE RISKS
In a bearish scenario, the first level of support to watch is the lower limit of the ascending trend channel at $2,355. Should the price move further down, the next significant support is at the 100-period EMA at $2,340. Continued selling pressure below this level could drag XAU/USD back to $2,300.
US DOLLAR PERFORMANCE IN THE LAST 7 DAYS
The table below shows the percentage change of the US Dollar (USD) against major currencies over the past 7 days, with the USD showing the strongest performance against the Japanese Yen.
| Currency | Percentage Change |
|---|
| Japanese Yen | +2.3% |
| Euro | +1.1% |
| British Pound | +0.8% |
| Swiss Franc | +0.5% |
| Canadian Dollar | +0.3% |
| Australian Dollar | +0.2% |
| New Zealand Dollar | +0.1% |
CONCLUSION
While gold is currently trading on a negative note, its overall technical outlook remains bullish as long as it stays above key support levels. Investors should watch for a break above the $2,400 resistance to confirm a potential move towards higher targets, while closely monitoring support levels for any signs of a bearish reversal.
The gold price (XAU/USD) is trading with a bearish bias on Friday, retreating from the nearly $2,400 barrier. Earlier sessions saw a bullish move in precious metals, driven by softer-than-expected US inflation data for April, which fueled hopes for potential rate cuts from the US Federal Reserve (Fed). However, a cautious stance from Fed officials on Thursday, emphasizing the need to maintain high borrowing costs for an extended period, has dampened these expectations. Consequently, the US Dollar (USD) has strengthened, dragging the yellow metal lower as higher interest rates reduce overall investment demand for non-yielding assets like gold.
FED’S INFLUENCE AND MARKET REACTIONS
The recent decline in gold prices underscores the significant influence of the Fed’s monetary policy on market dynamics. Softer inflation data initially sparked optimism about potential rate cuts, which typically benefit gold by reducing the opportunity cost of holding non-yielding assets. However, the Fed’s reiterated commitment to keeping rates high has counteracted this optimism, reinforcing the USD’s strength and pressuring gold prices.
Market Focus Shifts to Fed Officials’ Speeches
With no major economic data releases from the US docket, market participants are keenly awaiting comments from several Fed officials, including Neel Kashkari, Christopher Waller, and Mary Daly, scheduled to speak later on Friday. Their remarks are expected to provide further insights into the Fed’s future monetary policy trajectory, which will likely influence gold prices and broader market sentiment.
TECHNICAL ANALYSIS: GOLD PRICE’S UPSIDE REMAINS INTACT
Gold prices (XAU/USD) are trading with a bearish bias today but maintain a constructive outlook according to the four-hour chart. Since May 2, the precious metal has formed an ascending trend channel, suggesting continued bullish sentiment as long as it remains above the 100-period Exponential Moving Average (EMA). Currently, gold stands in bullish territory around 62.00, indicating that the path of least resistance is to the upside.
KEY LEVELS AND RESISTANCE
The upper boundary of the ascending trend channel, along with the psychological barrier of $2,400, acts as a crucial resistance level. Breaking above this level could see gold making another attempt at its all-time high of $2,432, with the potential to reach the $2,500 round figure.
SUPPORT LEVELS AND DOWNSIDE RISKS
In a bearish scenario, the first level of support to watch is the lower limit of the ascending trend channel at $2,355. Should the price move further down, the next significant support is at the 100-period EMA at $2,340. Continued selling pressure below this level could drag XAU/USD back to $2,300.
US DOLLAR PERFORMANCE IN THE LAST 7 DAYS
The table below shows the percentage change of the US Dollar (USD) against major currencies over the past 7 days, with the USD showing the strongest performance against the Japanese Yen.
| Currency | Percentage Change |
|---|
| Japanese Yen | +2.3% |
| Euro | +1.1% |
| British Pound | +0.8% |
| Swiss Franc | +0.5% |
| Canadian Dollar | +0.3% |
| Australian Dollar | +0.2% |
| New Zealand Dollar | +0.1% |
CONCLUSION
While gold is currently trading on a negative note, its overall technical outlook remains bullish as long as it stays above key support levels. Investors should watch for a break above the $2,400 resistance to confirm a potential move towards higher targets, while closely monitoring support levels for any signs of a bearish reversal.
