Gold prices resumed the advance on Tuesday after a limited downward correction prompted by the dollar's spike that followed the encouraging nonfarm payrolls report.
At the time of writing, the spot price XAU/USD is trading at $2,005 an ounce, up 0.71% on the day. At the same time, the Dollar Index DXY is trading at 0.3% below its opening price at 102.25.
The greenback has weakened across the board despite higher U.S. Treasury yields. The 10-Year note rate is at 3.45%, accumulating three days of gains amid speculation the Federal Reserve might raise rates by 25 bps once again in May, taking the Fed funds range to 5%-5.25% before pausing its tightening cycle.
On Friday, an in-line-with-expectations employment report fueled expectations of a 25 bps hike. On Wednesday, the U.S. will publish March consumer price index (CPI) data, which will be closely scrutinized by investors, especially after Federal Reserve Bank of New York President John Williams said on Tuesday that they need to stay in "data-dependent mode," and added that if inflation comes down, they will have to lower interest rates.
From a technical perspective, the XAU/USD pair holds a positive short-term outlook. However, the daily chart exhibits dwindling bullish momentum following the $2,030 - $1,980 downward correction over the last few days.
A break above last week's high of $2,032 could pave the way to a retest of records highs in the $2,070 area. On the other hand, the $1,970 zone stands as critical short-term support, containing the 78.6% retracement of the $2,070 - $1,615 downtrend and the 20-day simple moving average.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Gold Reclaims $2,000 Ahead of U.S. Inflation Data
Published 04/11/2023, 12:49 PM
Updated 07/09/2023, 06:32 AM
Gold Reclaims $2,000 Ahead of U.S. Inflation Data
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.