Gold bounces off $4,650 demand area yet again amid broad risk aversion.
The US Dollar retreats from ten-day highs as buyers take a breather after the recent uptrend.
Technically, Gold’s bullish trend remains intact, with dip-buying a key trading strategy.
Gold buyers are fighting back control early Friday, after having found bargain buying interest once again near the $4,650 psychological level.
That being said, a sense of caution still prevails amongst them as volatility continues to remain high across the financial markets amid the ongoing rotation trend.
Markets continued to reposition their trades from overvalued assets such as tech stocks, Gold, Silver etc into value and undermined assets such as the US Dollar .
Gold also suffered on Thursday as the dovish monetary policy announcements by the Bank of England and the European Central Bank sank the Pound Sterling and the Euro, respectively, bolstering the USD and smashing Gold.
But, the overall bullish potential for Gold remains well in place amid ongoing geopolitical tensions between the United States and Iran.
Meanwhile, Russia, Ukraine and the US concluded a second round of peace talks in Abu Dhabi, agreeing on a major prisoner exchange but leaving key political and security issues unresolved.
This, combined with the uncertain US Fed monetary policy outlook under the leadership of Fed Chair nomination Kevin Warsh, remains supportive of the non-yielding Gold.
On the data front, the delayed US JOLTS Job Openings Survey and Initial Jobless Claims only added to the unpredictability surrounding the Fed interest rate cuts this year, while lending some support to the bright metal.
Initial claims for state unemployment benefits jumped 22,000 to a seasonally adjusted 231,000 for the week ended January 31, the Labor Department said on Thursday.
“The US December JOLTS report shows a steep drop-off in job openings to 6.54 mln from a downwardly revised 6.93 mln level in November,” according to ING Bank.
Traders are still pricing in two cuts for the year but the possibility of a move in June has inched up.
Later in the day, the preliminary University of Michigan’s Consumer Sentiment and Inflation Expectations will provide some fresh trading impulse, with the end-of-the-week flows in play. Volatility is set to remain intense amid profit-taking and rotational trades.
Daily technical analysis
The SMA retain a bullish alignment, with the 21-day above the 50-, 100- and 200-day and all slopes rising. Price holds above the 50-, 100- and 200-day SMAs but sits just beneath the 21-day SMA, signaling a pause within the prevailing uptrend. The RSI (14) prints 51.82, neutral, reflecting momentum stabilization after prior overbought extremes. A reclaim of the 21-day SMA at $4,842.23 would reinstate topside traction, while the 50-day SMA at $4,545.27 underpins the pullback.
Trend indicators continue to support buyers as the 100- and 200-day SMAs extend higher, offering deeper support at $4,282.62 and $3,829.50 respectively. The RSI near the midline suggests consolidation could persist before the next directional push. A daily close above the 21-day SMA could extend the recovery within the broader bullish structure, whereas failure to regain it would keep price contained around the rising medium-term averages.
XAU/USD dip buyers emerge once again near $4,650
Gold buyers are fighting back control early Friday, after having found bargain buying interest once again near the $4,650 psychological level.
That being said, a sense of caution still prevails amongst them as volatility continues to remain high across the financial markets amid the ongoing rotation trend.
Markets continued to reposition their trades from overvalued assets such as tech stocks, Gold, Silver etc into value and undermined assets such as the US Dollar .
Gold also suffered on Thursday as the dovish monetary policy announcements by the Bank of England and the European Central Bank sank the Pound Sterling and the Euro, respectively, bolstering the USD and smashing Gold.
But, the overall bullish potential for Gold remains well in place amid ongoing geopolitical tensions between the United States and Iran.
Meanwhile, Russia, Ukraine and the US concluded a second round of peace talks in Abu Dhabi, agreeing on a major prisoner exchange but leaving key political and security issues unresolved.
This, combined with the uncertain US Fed monetary policy outlook under the leadership of Fed Chair nomination Kevin Warsh, remains supportive of the non-yielding Gold.
On the data front, the delayed US JOLTS Job Openings Survey and Initial Jobless Claims only added to the unpredictability surrounding the Fed interest rate cuts this year, while lending some support to the bright metal.
Initial claims for state unemployment benefits jumped 22,000 to a seasonally adjusted 231,000 for the week ended January 31, the Labor Department said on Thursday.
“The US December JOLTS report shows a steep drop-off in job openings to 6.54 mln from a downwardly revised 6.93 mln level in November,” according to ING Bank.
Traders are still pricing in two cuts for the year but the possibility of a move in June has inched up.
Later in the day, the preliminary University of Michigan’s Consumer Sentiment and Inflation Expectations will provide some fresh trading impulse, with the end-of-the-week flows in play. Volatility is set to remain intense amid profit-taking and rotational trades.
Daily technical analysis
The SMA retain a bullish alignment, with the 21-day above the 50-, 100- and 200-day and all slopes rising. Price holds above the 50-, 100- and 200-day SMAs but sits just beneath the 21-day SMA, signaling a pause within the prevailing uptrend. The RSI (14) prints 51.82, neutral, reflecting momentum stabilization after prior overbought extremes. A reclaim of the 21-day SMA at $4,842.23 would reinstate topside traction, while the 50-day SMA at $4,545.27 underpins the pullback.
Trend indicators continue to support buyers as the 100- and 200-day SMAs extend higher, offering deeper support at $4,282.62 and $3,829.50 respectively. The RSI near the midline suggests consolidation could persist before the next directional push. A daily close above the 21-day SMA could extend the recovery within the broader bullish structure, whereas failure to regain it would keep price contained around the rising medium-term averages.
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