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Gold Price Analysis: Aggressive Fed Drives Gold Down, XAU/USD Tests $1,930

  • Gold prices continue to decline on Friday as investors focus on Fed statements.
  • The Fed appears more hawkish than market participants believed last week.
  • The Dollar and Treasury yields rise this week, and Gold plummets.

The prices of XAU/USD are testing lower on Friday, approaching $1,930 following yesterday’s comments from Federal Reserve (Fed) Chairman Jerome Powell, who suggested that the Fed may have failed to achieve adequate tightening monetary policy to contain inflation.

Along with Fed Chair Powell, several Fed policymakers have spoken out this week suggesting that rates may not be high enough to limit inflation toward the Fed’s 2% target going forward. to the future. The hawkish stance completely overturned the widespread view in markets that the Fed had not only ended rate hikes but would soon begin a cycle of cuts.

Last week, investors announced the end of the Fed’s rate-hiking cycle following last Friday’s release of worse-than-expected Nonfarm Payrolls (NFP), but Fed officials have spent the week warning of that a single negative job data is not enough to change the dot plot.

Up Next: US CPI Inflation Data Will Balance Fed Statements

Next week’s US Consumer Price Index (CPI) will carry additional weight on Tuesday as investors try to see if inflation will cool enough for investors to once again expect futures. rate cuts to ease borrowing costs.

US CPI inflation numbers are expected to soften month-on-month, with the October headline forecast to fall from 0.4% to 0.1%, while annualized core CPI for the year to October will rise. would remain stable at 4.1%.

If the annualized core CPI holds, US inflation would remain double the Fed’s target of 2% annually.

XAU/USD Technical Outlook

Spot Gold declines on Friday accelerate price action in bear country, seeing a rejection of the 50-hour simple moving average (SMA) of $1,965.

XAU/USD closed the week completely bearish, with few offers of relief, with a rejection of the 200 hourly SMA early Monday and a drop of almost 3% for the week.

In daily candles, Longer moving line means there could be more falls.

XAU/USD Hourly Chart

XAU/USD Daily Chart

XAU/USD Technical Levels


Latest price today 1935.87
Today Daily Change -21.53
Today Daily variation % -1.10
Today’s daily opening 1957.4
daily SMA20 1969.35
daily SMA50 1923.22
SMA100 daily 1927.05
SMA200 Journal 1934.58
Previous daily high 1965.65
Previous daily low 1944.79
Previous weekly high 2007.98
Previous weekly low 1969.9
Previous Monthly High 2009.49
Previous monthly low 1810.51
Daily Fibonacci 38.2 1957.68
Fibonacci 61.8% daily 1952.76
Daily Pivot Point S1 1946.24
Daily Pivot Point S2 1935.09
Daily Pivot Point S3 1925.38
Daily Pivot Point R1 1967.1
Daily Pivot Point R2 1976.81
Daily Pivot Point R3 1987.96

Source: Fx Street

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