Amid China’s promising economic data, XAU/USD spot values surged, though gold faces challenges with rising global rates.
-----Highlights
Gold prices rise as dollar weakens against the yuan, fueled by strong Chinese economic data.
Potential U.S. rate hikes cast a shadow, making investors wary despite positive signs.
Robust U.S. economic data may delay anticipated rate cuts, with hikes more likely.
Gold (XAU/USD) prices experienced a surge as Friday saw the dollar declining against the yuan, following encouraging economic figures from China. The latter ignited hopes of economic rejuvenation in the premier gold consumer. Nevertheless, the looming potential of more interest rate hikes in the U.S. has left investors cautious.
-----Highlights
Gold prices rise as dollar weakens against the yuan, fueled by strong Chinese economic data.
Potential U.S. rate hikes cast a shadow, making investors wary despite positive signs.
Robust U.S. economic data may delay anticipated rate cuts, with hikes more likely.
Gold (XAU/USD) prices experienced a surge as Friday saw the dollar declining against the yuan, following encouraging economic figures from China. The latter ignited hopes of economic rejuvenation in the premier gold consumer. Nevertheless, the looming potential of more interest rate hikes in the U.S. has left investors cautious.
Comment:
In sum, the balance of probabilities indicates a continued hawkish lean from the Fed, aiming to nudge inflation towards its 2% goal – a scenario not particularly favorable for gold. Alongside, other central bank meetings, including those at the Bank of Japan and Bank of England, await market reactions, further shaping the trajectory of gold in the immediate term.
The current 4-hour price of Gold stands at 1931.03, slightly above the previous 4-hour price of 1929.83. The commodity currently stands above its 200-4H moving average of 1919.585 and above the 50-4H moving average of 1920.93, suggesting potential short-term bullish momentum. This sentiment is further reinforced by the 14-4H RSI reading of 60.03, indicating a moderately strong momentum without being overbought.
The commodity remains positioned between its main support area (1893.07 to 1885.79) and its main resistance zone (1946.99 to 1954.88). Overall, the market sentiment leans toward a cautious bullish outlook, with the near-term direction being controlled by the two moving averages.
The current 4-hour price of Gold stands at 1931.03, slightly above the previous 4-hour price of 1929.83. The commodity currently stands above its 200-4H moving average of 1919.585 and above the 50-4H moving average of 1920.93, suggesting potential short-term bullish momentum. This sentiment is further reinforced by the 14-4H RSI reading of 60.03, indicating a moderately strong momentum without being overbought.
The commodity remains positioned between its main support area (1893.07 to 1885.79) and its main resistance zone (1946.99 to 1954.88). Overall, the market sentiment leans toward a cautious bullish outlook, with the near-term direction being controlled by the two moving averages.
-Asian stock market struggles bolster gold’s position as a preferred investment.
-Chinese consumers drive gold prices skyward, hedging against a falling yuan.
With gold’s performance intricately linked to interest rate moves, all eyes are on the Federal Reserve’s forthcoming policy meeting. Should the central bank adopt a dovish stance, it could spell a significant rally for gold. However, any upward trajectory in interest rates might see the non-yielding asset lose its sheen among investors.
The current price of 1930.53 is slightly above its previous 4-hour price of 1928.26, indicating a marginal upward movement. This price sits comfortably above both the 200-4H moving average (1920.02) and the 50-4H moving average (1918.49), suggesting a current bullish momentum. The 14-4H RSI at 67.71 is approaching the overbought threshold but is not there yet, implying strong buying momentum.
Gold (XAU/USD) is trading above its main support area (1893.07 to 1885.79) but is inching closer to the main resistance zone (1946.99 to 1954.88). Given the indicators and positioning, the current market sentiment leans towards being bullish.