GOLD range play intact, with eyes on trade talks, Fedspeak
Gold price remains stuck in a familiar band early Monday as the new week kicks off.
The US Dollar sold into US fiscal concerns and trade uncertainty ahead of Fedspeak.
The daily RSI stays bearish but Gold buyers refuse to give up while the 50-day SMA holds.
Gold price is showing some fresh signs of life early Monday, following a weekly decline. The further upside in Gold price depends on the upcoming Fedspeak and talks over potential US trade deals amid rising concerns over US fiscal debt.
Markets have resorted to selling US assets as they respond to the credit blow, marking the start of a new week. Moody’s downgraded the US sovereign credit rating on Friday by one notch from its pristine “Aaa” rating to “Aa1”.The rating downgrade is based on concerns about the nation’s growing $36 trillion debt pile and higher interest payments amid US President Donald Trump’s erratic economic and trade policies.
The US Dollar wilted alongside the Treasury bonds and US equity futures, reviving the safe-haven appeal of Gold price. However, rising US Treasury bond yields on economic concerns limit the upside attempts in the yellow metal, leaving the bullion confined in a range above $3,200.
Further, US Treasury Secretary Scott Bessent’s tariff threat on Sunday also keeps markets on the edge, allowing Gold price some sigh of relief. These factors have unnerved markets, and hence, they pay little heed to the news that the House panel approved President Trump’s tax cut bill early Monday, paving the way for possible passage in the House of Representatives later this week.
In the day ahead, Gold price could likely remain supported as the USD could face headwinds from growing economic and fiscal concerns. Data released last week showed that the US PPI in April fell unexpectedly, while Retail Sales growth slowed, and CPI rose less than expected.
However, any optimistic headlines on the expected US trade agreements with South Korea, India and Japan could refuel the Gold price downside. Cautious remarks from Fed policymakers will likely hinder the rebound in the bright metal.
Daily technical analysis
Technically, the daily chart shows that XAU/USD trades in the green, yet also that it posted a lower low and a lower high. At the same time, the 20 Simple Moving Average (SMA) turns modestly lower around the $3,305 level, while the 100 and 200 SMAs maintain their upward slopes far below the current level. Finally, technical indicators aim higher, but remain below their previous intraday highs and within negative levels, suggesting buying is still tepid.
The near-term picture shows buyers are piling up, but still lack full conviction. The pair is currently pressuring from below a flat 20 SMA, while the longer moving averages are pretty much flat above the shorter one. Technical indicators, in the meantime, head firmly north, yet remain within negative levels.
GOLD range play intact, with eyes on trade talks, Fedspeak
Gold price is showing some fresh signs of life early Monday, following a weekly decline. The further upside in Gold price depends on the upcoming Fedspeak and talks over potential US trade deals amid rising concerns over US fiscal debt.
Markets have resorted to selling US assets as they respond to the credit blow, marking the start of a new week. Moody’s downgraded the US sovereign credit rating on Friday by one notch from its pristine “Aaa” rating to “Aa1”.The rating downgrade is based on concerns about the nation’s growing $36 trillion debt pile and higher interest payments amid US President Donald Trump’s erratic economic and trade policies.
The US Dollar wilted alongside the Treasury bonds and US equity futures, reviving the safe-haven appeal of Gold price. However, rising US Treasury bond yields on economic concerns limit the upside attempts in the yellow metal, leaving the bullion confined in a range above $3,200.
Further, US Treasury Secretary Scott Bessent’s tariff threat on Sunday also keeps markets on the edge, allowing Gold price some sigh of relief. These factors have unnerved markets, and hence, they pay little heed to the news that the House panel approved President Trump’s tax cut bill early Monday, paving the way for possible passage in the House of Representatives later this week.
In the day ahead, Gold price could likely remain supported as the USD could face headwinds from growing economic and fiscal concerns. Data released last week showed that the US PPI in April fell unexpectedly, while Retail Sales growth slowed, and CPI rose less than expected.
However, any optimistic headlines on the expected US trade agreements with South Korea, India and Japan could refuel the Gold price downside. Cautious remarks from Fed policymakers will likely hinder the rebound in the bright metal.
Daily technical analysis
Technically, the daily chart shows that XAU/USD trades in the green, yet also that it posted a lower low and a lower high. At the same time, the 20 Simple Moving Average (SMA) turns modestly lower around the $3,305 level, while the 100 and 200 SMAs maintain their upward slopes far below the current level. Finally, technical indicators aim higher, but remain below their previous intraday highs and within negative levels, suggesting buying is still tepid.
The near-term picture shows buyers are piling up, but still lack full conviction. The pair is currently pressuring from below a flat 20 SMA, while the longer moving averages are pretty much flat above the shorter one. Technical indicators, in the meantime, head firmly north, yet remain within negative levels.
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