Gold turned really bullish in March as the USD retreated lower on the banking sector crisis, while XAU benefited as a safe haven, which sent the price
Gold turned really bullish in March as the USD retreated lower on the banking sector crisis, while XAU benefited as a safe haven, which sent the price above $2,000. The pace of the bullish momentum slowed but the climb continued and Gold moved within reach of $2,050. But the price started retreating lower and Gold fell below $2,000, forming a support zone around $1,970.
Since the middle of April, Gold has remained volatile, with the price bouncing around both sides of $ 2,000, which continued today as well. Traders were anxious ahead of US GDP and Core PCE data released a while ago, with the USD remaining steady before, while after the report the USD found some bids, despite the headline GDP missing expectations. Treasury yields were also steadied after sliding lower earlier in the week.
G-10 currencies have had a slow start today, although the NZD managed to climb a touch higher, reclaiming territory above 0.6140. After the North American close, Meta-verse revised its revenue outlook for the second quarter to USD 32 billion, above the forecasts of 29.48 billion. Futures are pointing toward a modestly positive start for Wall Street later today.
GOLD has been caught in a $1,934–2,049 range for around six weeks and recently the range has narrowed after the price fell between two moving averages on the H4 chart. The lack of short-term direction is characterized by the price clustering between the 100 SMA (green) at the top and 200-day Simple Moving Averages (SMA) at the bottom. A breakout of the range on either side might see momentum build up for that direction but notable support and resistance levels lie on both sides.
Gold prices rose today as a softer USD rekindled some of the bullion’s appeal for overseas buyers, while investors braced for a host of U.S. economic data ahead of a crucial Federal Reserve policy meeting next week. Spot Gold rose 0.4% to $1,997.59 per ounce, while U.S. Gold futures climbed 0.5% to $2,006.60.
But the 100 SMA rejected the price once again and after a reversal following the US GDP report for Q1, Gold is treading waters right now, as investors keep an eye on U.S. debt ceiling talks, and the FED meeting next, which could offer some ideas on what to expect for the rest of the year.
The U.S. House of Representatives narrowly passed a bill on Wednesday to raise the government’s $31.4 trillion debt ceiling. Meanwhile, First Republic Bank’s market value plunged again as investors waited to see if it would be able to find buyers for assets and engineer a turnaround without government support. Therefore, given the “uneasy tone with the banking situation” and the “debt ceiling uncertainties, Gold will probably be more sensitive to the upside than to the downside
GOLD
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