XAU/USD keeps breaking into fresh record highs; where next?
Gold tested $5,600 as the record rally extended into early Thursday before profit-taking seeped in.
The US Dollar holds its overnight recovery following Bessent’s reassurance, Fed rate cut pause.
Gold stays a ‘buy-on-dips trade, despite extremely overbought conditions on the daily timeframe.
Gold is keeping its corrective decline intact toward $5,500 early Thursday after having tested $5,600 for the first time on record amid relentless buying.
Despite a cautious hold interest rate decision announced by the US Federal Reserve on Wednesday, Gold’s record-setting stint remains unabated.
However, buyers take a breather amid resurgent demand for the USD. Optimistic comments on employment and economic growth from Fed Chair Jerome Powell during the post-policy meeting press conference lifted the Greenback across the board.
Additionally, US Treasury Secretary Scott Bessent calmed investor nerves late Tuesday, while stalling the decline in the USD. In an interview to CNBC, Bessent highlighted that the US has always had a “strong dollar” policy and that they are “absolutely not” intervening in the Japanese currency markets.
Furthermore, upbeat earnings reports from the American tech titans such as Meta, Microsoft and Tesla spur market optimism and cap the Gold price upside.
From a broader perspective, diminishing investors’ confidence in US assets, amid President Donald Trump’s erratic foreign policies, the diversification away from fiat currencies and geopolitical risks will continue powering the record-setting spree in Gold.
Hence, any corrective pullback is more likely to get bought into.
Looking ahead, Gold traders might take cues from the mid-tier US Jobless Claims and trade data for some fresh trading impulse as Trump is unlikely to announce his Fed Chair pick this week.
Citing Bessent, Yahoo News reported earlier that Trump’s Fed Chair pick may come in a week or so.
Daily technical analysis
In the daily chart, XAU/USD trades at $5,549.90. The 21-day SMA rises above the 50-, 100- and 200-day SMAs, underscoring strong bullish momentum. All SMAs slope higher, and price holds decisively above them. The 21-day SMA at $4,730.36 offers initial dynamic support. The Relative Strength Index (14) prints 91.08 (overbought), which could cap near-term gains and trigger consolidation.
Broader trend metrics remain supportive, with the 200-day SMA at $3,784.46 marking long-term support and the shorter SMAs continuing to rise. RSI stays stretched in overbought territory, so any cooling could drive a pullback toward the $4,462.59–$4,213.40 area, where the rising SMAs could cushion declines before bulls attempt another leg higher.
XAU/USD keeps breaking into fresh record highs; where next?
Gold is keeping its corrective decline intact toward $5,500 early Thursday after having tested $5,600 for the first time on record amid relentless buying.
Despite a cautious hold interest rate decision announced by the US Federal Reserve on Wednesday, Gold’s record-setting stint remains unabated.
However, buyers take a breather amid resurgent demand for the USD. Optimistic comments on employment and economic growth from Fed Chair Jerome Powell during the post-policy meeting press conference lifted the Greenback across the board.
Additionally, US Treasury Secretary Scott Bessent calmed investor nerves late Tuesday, while stalling the decline in the USD. In an interview to CNBC, Bessent highlighted that the US has always had a “strong dollar” policy and that they are “absolutely not” intervening in the Japanese currency markets.
Furthermore, upbeat earnings reports from the American tech titans such as Meta, Microsoft and Tesla spur market optimism and cap the Gold price upside.
From a broader perspective, diminishing investors’ confidence in US assets, amid President Donald Trump’s erratic foreign policies, the diversification away from fiat currencies and geopolitical risks will continue powering the record-setting spree in Gold.
Hence, any corrective pullback is more likely to get bought into.
Looking ahead, Gold traders might take cues from the mid-tier US Jobless Claims and trade data for some fresh trading impulse as Trump is unlikely to announce his Fed Chair pick this week.
Citing Bessent, Yahoo News reported earlier that Trump’s Fed Chair pick may come in a week or so.
Daily technical analysis
In the daily chart, XAU/USD trades at $5,549.90. The 21-day SMA rises above the 50-, 100- and 200-day SMAs, underscoring strong bullish momentum. All SMAs slope higher, and price holds decisively above them. The 21-day SMA at $4,730.36 offers initial dynamic support. The Relative Strength Index (14) prints 91.08 (overbought), which could cap near-term gains and trigger consolidation.
Broader trend metrics remain supportive, with the 200-day SMA at $3,784.46 marking long-term support and the shorter SMAs continuing to rise. RSI stays stretched in overbought territory, so any cooling could drive a pullback toward the $4,462.59–$4,213.40 area, where the rising SMAs could cushion declines before bulls attempt another leg higher.
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