The XAU/USD has seen a slight decrease, but it is still holding above $2,018 with a minor pullback. Key indicators such as RSI and MACD are showing subdued buying momentum as bulls consolidate December’s rally.
The XAU/USD was trading at $2,018 on Friday, marking a 0.08% decline and a 0.55% weekly loss. After reaching $2,135 in December, buyers have taken a pause, indicating a neutral to bullish outlook on the daily chart. However, the indicators remain relatively weak despite some momentum observed in the four-hour chart.
The USD’s recovery, fueled by markets adjusting their bets on the Federal Reserve due to the US economy’s resilience, has pushed the metal lower. Soft Personal Consumption Expenditures (PCE) figures from December did not significantly impact market expectations for the Fed, leading to a push of the easing cycle start to May from March.
On the daily chart, the RSI and the position of the metal relative to its SMAs paint a diverse picture. Despite the RSI showing a negative slope and residing in negative territory, the price is above the 20, 100, and 200-day SMAs, indicating a bullish standing in the broader time frame. On the four-hour chart, the momentum indicators present weak yet existent bullish undertones. The RSI shows a negative slope but remains in positive territory, while the MACD continues to produce flat red bars, suggesting a hold on bearish momentum.
Insight: Despite the minor pullback, the XAU/USD remains in a relatively bullish position based on the broader time frame. The current weakness in key indicators may be a temporary pause in the bullish rally seen in December. Additionally, the USD’s recovery and market expectations for the Fed’s easing cycle are influencing the metal’s movement, providing insight into the broader economic landscape and investor sentiment.
