The current price of XAU/USD is 2,026.45. Gold price gapped higher at the weekly opening, reaching $2,037.46 in the European session before the US Dollar recovered in the American session, leaving the pair trading barely up on a daily basis.
Tensions in the Middle East following a drone attack on US troops by Iran, as well as a packed macroeconomic calendar, have led to caution in the market. Stock markets are trading mixed as investors prepare for a new round of earning reports.
Investors are awaiting updates on Eurozone and German GDP, US employment-related data including the Nonfarm Payrolls (NFP) report, and the US Federal Reserve (Fed) monetary policy decision. European Central Bank (ECB) officials’ comments are also influencing trading boards as they try to cool down hopes for an April rate cut.
In terms of technical analysis, the daily chart for XAU/USD shows the pair holding on to modest intraday gains but remaining below a bearish 20 Simple Moving Average (SMA). The longer moving averages lack directional strength well below the current level, and technical indicators ticked marginally higher but remain within negative levels.
On the 4-hour chart, XAU/USD is neutral, with all moving averages lacking directional strength and technical indicators showing near-term buying interest is giving up.
Support levels for XAU/USD are at 2,019.20, 2,010.00, and 2,001.60, while resistance levels are at 2,033.10, 2,040.30, and 2,052.60.
Additional Insight:
The geopolitical tensions in the Middle East are likely to continue impacting the price of gold, as any further escalations could lead to increased demand for the safe-haven asset. The upcoming macroeconomic events and earnings reports will also play a crucial role in determining the direction of XAU/USD. Additionally, investors will closely watch the US Federal Reserve’s monetary policy decision for signals on the future trajectory of interest rates, which could also impact the movement of gold prices.
