The current price of XAU/USD is $2,015.53. Federal Reserve’s Raphael Bostic suggested that rate cuts may come in the third quarter, while Wall Street ignored negative international trends and posted modest gains. XAU/USD is currently correcting near-term oversold conditions, although bears still have control.
Gold is consolidating its weekly losses and is currently trading at around $2,015 per troy ounce. This comes after the price of XAU/USD hit a multi-week low of $2,001.68 earlier in the week. The market’s positive mood improved slightly, with the US Dollar maintaining a positive tone as Asian shares fell and concerns about the Chinese market dominated headlines. However, turbulence in the housing sector and tepid growth-related data suggest the economy may be in worse shape than initially believed.
Market sentiment improved when Wall Street opened, as US data performed better than expected, with housing starts and building permits increasing in December. Initial jobless claims also beat expectations, coming in at 187K for the week ending January 12. However, the Philadelphia Fed Manufacturing Survey Index came in at -10.6, worse than the expected -7, although an improvement from the previous -12.8.
Federal Reserve officials did not provide any fresh clues on future monetary policy, with Fed’s Bank of Atlanta President Raphael Bostic reiterating that he does not expect interest rates to be cut until the third quarter of the year.
From a technical standpoint, XAU/USD is still at risk of falling. While the daily chart suggests a mildly bearish trend, the 4-hour chart indicates that any recovery is likely to be corrective. The pair would need to rise beyond $2,049.20 to regain its bullish strength.
In addition to these insights, it’s important to note that gold is often considered a safe-haven asset and its price is influenced by a variety of factors including central bank policies, geopolitical tensions, and inflation. Additionally, analysts often use technical indicators, moving averages, and key support and resistance levels to gauge the potential future movements of gold prices. Traders and investors closely monitor economic data, market sentiment, and geopolitical developments to make informed decisions about trading XAU/USD.
