Gold benefits from the weakness of the US dollar due to the increase in pressure on the fed rate cuts

• Gold advances as investors move away from the US dollar.
• The fortress of the US dollar Flesaa while Powell of the Fed and President Trump disagree on the time of interest rate cuts.
• The Xau/USD is quoted among the simple mobile socks of 50 and 20 days, which provide support and resistance for precious metal.

Gold is recovering confidence on Thursday as the poor performance of the US dollar (USD) becomes the main engine of price action.

With the Xau/USD, quoting about $ 3,340 in the European session at the time of writing, the yellow metal continues to show signs of resilience.

Although global markets have adopted a tone of risk, falls in the price of gold have been limited. This is greatly attributed to a decrease in confidence in the dollar, which has been under scrutiny in recent months.

The investor approach has now moved towards the moment when the Fed will begin to cut interest rates, which puts the US economic calendar again in the center of attention.

At 12:30 GMT, the final number of the Gross Domestic Product (GDP) of the first quarter will be published, the weekly numbers of initial applications for unemployment subsidy and the requests for lasting goods in May. Sales of pending housing for the month of May are scheduled to be published at 14:00 GMT, followed by additional comments from several speakers of the Fed.

In addition, with the US president, Donald Trump, resuming his criticism of the president of the Fed, Jerome Powell, on Wednesday, more comments will be monitored closely.

What moves the market today: gold advances as the battle between Donald Trump and Jerome Powell persists

• The president of the FED, Jerome Powell, concluded on Wednesday his two -day semiannual testimony before Congress, during which he was questioned about the monetary policy report. Although global central banks have reduced interest rates in the middle of the slowdown in inflation, the Fed has maintained rates without changes in the range of 4.25% -4.50% throughout this year. However, with inflation approaching the objective of 2% of the Fed, the time of the next rate cut has become a controversial issue.
• Recent economic data, including the consumer confidence data of the US Board Conference of Tuesday and the sales figures of new US housing on Wednesday, suggest that the US economy is beginning to suffer. However, a great concern for Powell have been the risks that tariffs can represent for inflation, which he believes will only become evident in a later stage.
• The Fedwatch of the CME tool reflects the expectations that the FED adjust the rates in the next meetings. A rate cut for September has been valued and continues to be valued, with a 68% probability of a 25 basic points (PBS) and a probability of 21.3% of a cut greater than 50 PBs. Until now, this has restricted the capacity of gold to recover the historical maximum of $ 3,500 reached in April.
• Meanwhile, President Trump went to the media at the NATO Summit on Wednesday, discussing several issues, including the US economy Trump once again condemned Powell of the Fed for his reluctance to cut rates. One of his appointments included that “he leaves, fortunately. I think it’s terrible.”
• In terms of risk feeling, the geopolitical risk has decreased for now, with the high fire between Israel and will be maintained for the third consecutive day. While the situation remains fragile, the lack of new climbs has diverted the flows to active refuge of gold, putting more emphasis on macroeconomic and policy factors for direction.
• Looking forward, the publication of the monthly data on Personal Consumption (PCE) of the US on Friday, the Fed preferred inflation indicator will be critical. A weak fact could rekindle the expectations of a short -term rates cut and offer a new impulse for gold.

Technical Gold Analysis: The Xau/USD remains in key mobile stockings

Gold is quoting in a adjusted range in the daily chart, consolidating in key mobile socks.

The price action is maintained just above the single mobile average (SMA) of 50 days, currently at $ 3,325, while the 20 -day SMA, at $ 3,356, now acts as a short -term resistance.

The momentum remains neutral, with the relative force index (RSI) around 50, reflecting a clear directional bias.

Daily Gold Graph (Xau/USD)

Above, the next resistance is found in the fibonacci setback of 23.6% of the April rally, about $ 3,371, while the support is around the Fibonacci levels of 38.2% and 50%, at $ 3,292 and $ 3,228, respectively.

A sustained movement above $ 3,371 could open the road to the 3,400 $ –3,450 $ area, while a break below the 50 -day SMA could expose a deeper support.