- XAU/USD retreated to $2,025 on Friday, posting losses of 0.40% on the day.
- Despite the mild revisions to the CPI, metals failed to rally.
- Daily chart indicators point to a bearish bias, with the negative slope of the RSI and the rising red bars of the MACD suggesting a selling impulse.
- On the four-hour chart, the indicators appear flat, pointing to a consolidation of losses.
In Friday's session, the XAU/USD was observed at a trading level of $2,025, marking a drop of 0.40%. Attention is focused on the Consumer Price Index (CPI) figures for January next week, after the US revised the December figures downwards, to continue placing bets on the Reserve's next decisions Federal (Fed).
In this sense, investors are attentive to the movements of the Federal Reserve, since the soft revisions of the CPI seem to have given respite to officials studying rate cuts. However, the US market's strong first-quarter growth forecasts and rising wage pressures amid a tight labor market by the Fed indicate that rate cuts could be delayed. For now, markets appear to have given up on the chances of a cut in March and instead moved them to May. Next week's inflation reading will be key to the timing of the easing cycle and, should the data justify delaying rate cuts, the yellow metal could continue to fall
XAU/USD technical analysis
On the daily chart, technical indicators show a predominance of selling pressure. The Relative Strength Index (RSI) is on a downward slope and hovering in the negative domain, suggesting that bearish momentum is currently prevailing. At the same time, the moving average convergence divergence (MACD) shows rising red bars, reinforcing the strength of the selling momentum. However, the broader perspective reveals a different story. Even though the metal is trading below the 20-day SMA, it remains comfortably above the 100-day and 200-day SMA. This inclination highlights the predominance of buying interest in the broader context, but that the bears do not stop gaining ground in the short term.
XAU/USD daily chart
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On the four-hour chart, the selling and buying forces appear to have temporarily reached a stalemate. Indicators have flattened, illustrating a consolidation phase following recent losses. The Relative Strength Index (RSI) is noticeably flat, entrenched within the negative zone, which could hint at persistent bearish sentiment. The Moving Average Convergence Divergence (MACD) also hints at a slight change in momentum with flat red bars, proposing the possibility of a period of consolidation.
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.
