XAU/USD Price Consolidates at $2,030 Level

Share:

XAU/USD Current price: $2,033.05

• The United States’ Gross Domestic Product was revised downward to 3.2% in Q4.
• Investors are waiting for an update on US inflation before making any directional decisions.
• XAU/USD is currently in a neutral position with potential bullish movement.

The US macroeconomic data had a mild impact on XAU/USD as it rebounded from an intraday low of $2,024.38 and is now trading around $2,033 an ounce. The latest Q4 GDP revision showed a 3.2% growth rate, slightly lower than the previous estimate. Additionally, the January Goods Trade Balance reported a deficit of $90.1 billion, worse than December’s figures.

On the market front, the tech sector retracement led to a cautious approach, with Wall Street indexes experiencing some losses though recovering slightly.

The focus now turns to the US Core PCE Price Index, which will be released later this week. The expectation is for a decrease in price pressures compared to the previous CPI release, which may influence market sentiment.

XAU/USD short-term technical outlook

Technically, XAU/USD is in a neutral-to-bullish position. In the daily chart, the 20 SMA is providing support, indicating potential for upward movement. However, technical indicators lack clear direction, signaling consolidation in the near term.

In the 4-hour chart, XAU/USD remains above the 20 SMA, suggesting a bullish bias despite neutral technical indicators. The longer moving averages also support this view by showing limited downside potential.

Support levels: 2,027.00 2,019.60 2,011.40

Resistance levels: 2,041.40 2,056.10 2,065.60

Overall, while XAU/USD remains technically neutral, there is a potential for bullish movement based on the current market conditions and upcoming US economic data releases.