- Gold prices record further losses for the week as risk appetite falters.
- The XAU/USD pair falls above $1,970, pointing to further declines.
- Market sentiment has reversed direction this week.
He Gold XAU/USD is falling for the second day in a row as the week turns towards risk-off flows following last week’s sentiment recovery. Markets overwhelmingly announced an end to rate hikes following the Federal Reserve’s (Fed) rate hold last week, but there was a pullback on Monday as investors moderated their forward positions on expectations for rates.
The hawkish comments from Fed officials early Tuesday, coupled with sour trade data from China, are increasing risk aversion, capping gold bids.
China’s trade balance figures came in below expectations, completely missing growth forecasts from headline Trade data that showed a further contraction in China’s goods exports. Fears of a slowdown in global growth caused by the weakening of the Chinese economy are once again unsettling investors and shortening last week’s risk-on rally.
Fed officials left the door open to further rate hikes in the future if inflation returns, and the U.S. central bank is likely much further away from rate cuts than investors expected.
Statements from Fed members continue to reinforce the “more hikes for longer” narrative, with several of them signaling that there will be no change in rates until the data clearly indicates that the time has come to do so.
XAU/USD Technical Outlook
Gold fell to $1,956.73 on risk aversion on Tuesday, bringing the two-day performance of XAU/USD to -1.83%, and despite a recovery back towards the $1,970 area, Gold remains immobilized in bear country for the moment.
The $.
XAU/USD Daily Chart
XAU/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
