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For three trading sessions in a row, the price of gold XAU/USD is trying to compensate for its recent sharp losses, which took 100 dollars from the price of an ounce. It fell to the support level of $1861 and the rebound gains did not exceed the level of $1886 per ounce before settling around the level of $1875 per ounce. This confirms that the bulls need more stimulation the strength of the US dollar continues to negatively affect the gold market which recorded the resistance level of $1960 per ounce. This is the highest it has been in nine months before the US jobs numbers were announced at the end of last week.
On another note, the sell-off in tech stocks weighed heavily on the US market, as the latest series of speakers at the Federal Reserve supported the idea that US interest rates will need to continue rising to crush inflation.
The analysts reported that while this will all depend on the economic data as pointed out by Jerome Powell, the markets are still susceptible to price fluctuations. New York Federal Reserve Bank President John Williams has indicated that policy may need to be tight for some time. These statements were echoed by his counterpart in Minneapolis, Neil Kashkari, as well as Federal Reserve Bank governors Christopher Waller and Lisa Cook.
A shift in sentiment is evident in the price options – where many big bets on the US Federal Reserve rate, which reaches 6 percent – stood out. This is almost a percentage point higher than the consensus. For many market watchers, this tough situation makes it difficult for stocks to continue rising – especially after the rally in the S&P 500 index that sent the measure into overbought territory.
Another aspect is that while Powell has refrained from the upward pressure on stocks that has contributed to the recent easing of financial conditions, other policymakers are adopting a tougher speech to limit gains.
According to trading, the S&P 500 almost wiped out gains on Tuesday. The Nasdaq 100 underperformed, with shares of Alphabet Inc. Google parent company by 8 percent over concerns that its new artificial intelligence chatbot Bard could lead to inaccurate responses. Some shares of other giant companies such as Apple Inc. also declined. and Amazon.com Inc., while Microsoft Corp’s stock gains brought the software giant’s market value close to $2 trillion.
Today’s XAU/USD Gold Price Predictions:
- According to the trades on the chart for today’s time frame, the price of gold XAU/USD is still under downward pressure since it lost the resistance level of $1960 per ounce before the announcement of the American jobs’ numbers.
- The break of the trend is completely clear and the bears’ control over the trend will strengthen if the price of gold moves to the support levels of $1855 and $1830 per ounce respectively.
- This will depend on how much the US dollar recovers in the next trading sessions.
- So far, the upward pressure on gold prices is weak after the recent sales.
The bulls will have the opportunity to control if the price of gold XAU/USD exceeds the level of $1885, which stimulates the move towards the psychological resistance of $1900 again. The statements of American monetary policy officials and how willing investors are to risk or not will affect the price of gold.
Ready to trade our Gold prediction today? Here’s a list of some of the best XAU/USD brokers to check out.
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