- Gold is up 1.12%, trading at $1,979.90, as US dollar strength subsides, with investors eyeing the $1,980 resistance level.
- Statements from Fed Chairman Jerome Powell and US Treasury Secretary Janet Yellen rocked the market, sending XAU/USD rallying significantly.
- XAU/USD remains on track for a 1.90% weekly loss after strong US retail sales and industrial production, as well as falling jobless claims, hint at possible US action. the fed.
Gold price rose more than 1% on Friday, paring some of the losses suffered during the week, as hawkish rhetoric from the Fed bolstered the dollar, which posted gains of 0.37%, according to the Dollar Index ( DXY). At the time of writing, the XAU/USD pair is trading at $1,979.90, up 1.12% daily.
XAU/USD Soars More Than 1% After Treasury Secretary’s Statements Cause Risk Aversion Momentum and USD Fall
The XAU/USD pair bottomed around $1,954.14 after Federal Reserve (Fed) Chairman Jerome Powell delivered a few words at a conference on Friday. Fed Chairman Jerome Powell noted that inflation is currently above the target level and underscores the Fed’s unwavering commitment to guiding inflation back toward the 2% target, saying “failure would do more damage.” In addition, Powell pointed to the strength of the banking system and suggested that tightening bank credit conditions could prevent a possible rate hike.
At the same time, a headline said CNN had reported that US Treasury Secretary Janet Yellen had told bank CEOs on Thursday that more mergers might be necessary after a series of of bank failures spurred a boost in risk appetite; hence XAU/USD soared strongly.
Discussions about the US debt ceiling came to a halt when the leader of the US House of Representatives, Kevin McCarthy, said. Instead, the White House commented that a deal remains possible.
Meanwhile, the Dollar Index (DXY), an indicator of the evolution of the dollar against a basket of six currencies, loses 0.30% and stands at 103.017, which seems to be profit-taking by traders facing To the weekend.
However, rising US Treasury yields halted the XAU/USD rally. The US 10-year yield lost two and a half basis points to 3,673%.
Although XAU/USD is paring some of its weekly losses, it is on track to lose 1.90% on the week after strong US retail sales, industrial production and falling jobless claims account for new actions by the Fed.
XAU/USD Price Analysis: Technical Perspective
After three consecutive days of bearish candlesticks, XAU/USD is forming a bullish engulfing candlestick pattern and is about to recapture the 50-day EMA at $1,977.38. Given the background, XAU/USD could resume its uptrend, but RSI in bearish territory may curb XAU/USD gains.
XAU/USD must achieve a daily close above $1980 for a bullish resumption. Risks to the upside lie at the 20-day EMA at $1,999, followed by the May 16 high of $2,018.28. On the other hand, the first support for XAU/USD would be the May 18 low at $1,951.87, followed by the 100-day EMA at $1,931.
|Last price today||1983.03|
|daily change today||25.42|
|current daily variation||1.30|
|daily opening today||1957.61|
|previous daily high||1986.04|
|previous daily low||1952.01|
|Previous Weekly High||2048.27|
|previous weekly low||2000.95|
|Previous Monthly High||2048.75|
|Previous monthly minimum||1949.83|
|Fibonacci daily 38.2||1965.01|
|Fibonacci 61.8% daily||1973.04|
|Daily Pivot Point S1||1944.4|
|Daily Pivot Point S2||1931.19|
|Daily Pivot Point S3||1910.37|
|Daily Pivot Point R1||1978.43|
|Daily Pivot Point R2||1999.25|
|Daily Pivot Point R3||2012.46|
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.