Gold Consolidates as US Dollar Takes A Breather Ahead of Key Data. Where to for XAU/USD?
The volatility of the price of gold is currently stagnant, with fluctuations occurring within the range of US$ 2,000 per ounce. The market seems to be awaiting the release of US GDP and Core PCE data later today, and thus far, there has been no significant movement in the value of the US Dollar. The stability of Treasury yields has been observed following their earlier decline this week. The 10-year bond, which serves as a benchmark, is currently situated below the 3.50% threshold.
The actual returns persist in a state of inactivity, as the section of the curve closest to 1.20% remains significantly lower than the previous high of 1.36%, which occurred last week.The G-10 currencies have experienced a lackluster beginning to Thursday’s trading, with the exception of the New Zealand Dollar, which has seen a slight increase in value and is now trading above 0.6140.
Meta adjusted their revenue forecast for the second quarter to USD 32 billion, surpassing the projected amount of 29.48 billion, following the conclusion of trading in North America. Futures indicate a slightly favorable opening for Wall Street later in the day.The Asia-Pacific equities market experienced a subdued trading session today, with little activity observed. Deutsche Bank disclosed that their first quarter earnings fell short of projections, reporting revenue of €2.36 billion as opposed to the anticipated €2.53 billion for the period.At the time of writing, the WTI futures contract is in close proximity to US$ 77.50 per barrel, with the Brent contract slightly below US$ 78 per barrel.
GOLD TECHNICAL ANALYSIS
For approximately six weeks, gold has been confined to a range spanning from 1934 to 2049 and continues to maintain its position within an ascending trend channel.The presence of price clustering near the 10- and 21-day Simple Moving Averages (SMA) indicates a lack of short-term direction.If the range is broken, it could lead to an increase in momentum in that particular direction. However, it is worth noting that there are significant levels of support and resistance on both sides.
A Double Top has formed at the topside, consisting of the highest recorded value of 2075 in April 2020 and a subsequent unsuccessful attempt to surpass it in March 2022, resulting in a peak of 2070.The 1885 – 1895 region is identified as a significant support zone, albeit with potential drawbacks. This zone encompasses several critical indicators, including the 100-day Simple Moving Average, a prior low, a breakpoint, and an ascending trend line.
Gold CHART by Trading View
