Gold, XAU / USD, Fed, Jerome Powell, US Retail, Technical Analysis – Call Points:
- Gold prices traded off as risk aversion increased USDbond yields fell
- US pink retail and the attitude of the University of Michigan are the main risks
- XAU / USD can form a 4-hour chart at the junction of the main SMAs
Anti-Fiat gold prices have been relatively flat over the past 24 hours, seeking to further boost profits since the end of May. The yellow metal faced conflicting basic forces. Longer-term Treasury profitability fell on Thursday US dollar strengthened. This probably reflected investors who wanted safety in the form of shares Wall Street weakened. The Nasdaq The composite finished 0.70% lower.
The weakness of US equities followed the testimony of Federation President Jerome Powell to Congress. The head of the central bank continued to underestimate the recent growing inflationary pressures, adding that the economic recovery has not been sufficient to reduce the acquisition of assets. Meanwhile, increased Covid cases in the midst of the emerging Delta variant are likely to have poured cold water on the prospects for recovery.
With that in mind, the XAU / USD pair monitors the main threat to U.S. economic events over the weekend. Retail and University of Michigan entertainment are due to cross wires for the remaining 24 hours. The first is expected to be -0.3% m / m in June. The initial estimate of the latter is expected to be 86.5.
According to the Citi Economic Surprise Index, US data is better than expected later. However, the stock of rosy surprises has declined significantly over the past year. Nevertheless, positive results in retail and consumer sentiment can help improve the economic outlook. If bond yields and the US dollar follow this higher, gold could lose in the end of the week.
Golden technical analysis
In a four-hour chart, gold recently crossed the resistance zone in 1810–1818. XAU / USD is trying to keep the push above the 200-period Simple Moving Average (SMA). Meanwhile, the 50-period SMA is sneaking higher. A bullish crossover may occur in the near future, opening the door to a wider technical bias. However, the negative divergence of the RSI warns with caution.
XAU / USD 4-hour chart
–– Written by Daniel Dubrovsky Strategist to DailyFX.com
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