Gold Recovers Above $1,970 as Investors Await US Economic Data
Updated
Gold (XAU/USD) is trading above $1,970 per troy ounce, with its daily chart showing lower lows and lower highs, indicating a potential weakening of the upward trend. Meanwhile, technical indicators remain relatively flat in overbought territory. This pair continues to outpace all of its moving averages, with the 20-day Simple Moving Average (SMA) showing less upward momentum compared to longer-term averages.
The risk is skewed to the upside in the short term, as indicated by the 4-hour chart. Technical indicators are turning higher, though Momentum is still just below its 100 line. Additionally, this currency pair is struggling to recover above the 20-period SMA, while longer-term moving averages continue to rise significantly above the current level.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,982.80, $1,997.30, $2,008.10
The demand for the US dollar has weighed on gold prices, pushing XAU/USD down to a daily low of $1,953.53 per troy ounce during London trading hours. Financial markets started Tuesday with some optimism as Israel continued to postpone a ground invasion of Gaza, raising hopes for Hamas to release hostages. Diplomatic solutions remain invaluable despite global calls for a peaceful resolution.
Global bonds are rebounding, and yields are retreating from Monday's highs, exerting modest downward pressure on the USD throughout the morning. However, the greenback has regained ground ahead of the US open as European data signals a stronger economic slowdown in early Q4, rekindling concerns about global growth.
The USD continues to hold a positive tone after favorable US data was released, with S&P Global reporting business activity expanding at a faster pace than expected. Preliminary estimates for manufacturing PMI came in at 50, while the services index reached 59.51. Finally, the composite PMI was reported at <>, its highest level in three months.
During the US trading session, bond yields have stabilized, while US indices remain in the green, allowing XAU/USD to trim its losses for the day.
The risk is skewed to the upside in the short term, as indicated by the 4-hour chart. Technical indicators are turning higher, though Momentum is still just below its 100 line. Additionally, this currency pair is struggling to recover above the 20-period SMA, while longer-term moving averages continue to rise significantly above the current level.
Support Levels: $1,964.30, $1,953.30, $1,936.60
Resistance Levels: $1,982.80, $1,997.30, $2,008.10
The demand for the US dollar has weighed on gold prices, pushing XAU/USD down to a daily low of $1,953.53 per troy ounce during London trading hours. Financial markets started Tuesday with some optimism as Israel continued to postpone a ground invasion of Gaza, raising hopes for Hamas to release hostages. Diplomatic solutions remain invaluable despite global calls for a peaceful resolution.
Global bonds are rebounding, and yields are retreating from Monday's highs, exerting modest downward pressure on the USD throughout the morning. However, the greenback has regained ground ahead of the US open as European data signals a stronger economic slowdown in early Q4, rekindling concerns about global growth.
The USD continues to hold a positive tone after favorable US data was released, with S&P Global reporting business activity expanding at a faster pace than expected. Preliminary estimates for manufacturing PMI came in at 50, while the services index reached 59.51. Finally, the composite PMI was reported at <>, its highest level in three months.
During the US trading session, bond yields have stabilized, while US indices remain in the green, allowing XAU/USD to trim its losses for the day.
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