XAU/USD Faces Downward Pull, Closes at $2,013
The XAU/USD experienced a significant downward movement, closing at $2,013. The upcoming release of PCE data from December and Q4 GDP preliminary estimations in the US on Thursday could impact the market. Despite the negative action, the pair is holding above the 100 and 200-day moving averages, indicating a bullish trend in the longer run.
Insight: The downward movement in XAU/USD is influenced by rising US yields and the anticipation of key economic indicators from the US. This suggests that markets are uncertain about the Federal Reserve’s easing cycle and may impact the price of gold in the near future.
XAU/USD Daily Chart and Short-Term Outlook
The daily chart shows a neutral to bullish stance but with a certain selling momentum indicated by the RSI and MACD. However, the pair remains above the 100 and 200-day moving averages, signaling enduring overall bullish control. On the four-hour chart, the RSI and MACD point to a more bearish outlook, suggesting growing selling pressure and bearish momentum in the near term.
Insight: The technical indicators on the daily and four-hour charts provide conflicting signals, indicating a battle between bears and bulls. This suggests that the XAU/USD may face continued volatility in the near future until a clear trend emerges.
Additional Insight: The upcoming release of PCE data and Q4 GDP estimates in the US could provide further clarity on the direction of the market and the Fed’s easing calendar. Traders should closely monitor these economic indicators for potential impact on XAU/USD.
