Gold found some stability after yesterday’s price volatility as investors seemed to breathe a sigh of relief over the much softer than expected US GDP numbers. The XAU/USD hit fresh session highs at $1895 in wake of this news which has caused more confusion.
During a volatile session XAU/USD went back to a lower level in the 1800s. Traders and investors alike wait for what is going on with US economic outlooks.
The US economy continues to expand, with the latest GDP numbers showing that growth is slowing down. The strong inflation readings released alongside these disappointing reports may be a sign of things going not-too-well for future investors.
A possible raise in interest rates, expected before the year’s end, would keep US yields and US dollars underpinned, which would open the challenge for a recovery in XAU/USD above 1900$.
If the Fed does become less concerned about fighting inflation, this could be a nudge for gold in the long-run. Since it would be perceived by investors as a safe-haven on which to rely.
On a technical side of the analysis XAU/USD during the last session marked a price of 1885.69 with a variation of 0.01%.
- Daily moving average 20 period is 1939.38
- Daily moving average 50 period is 1937.68
- Daily moving average 100 period is 1874.84
- Daily moving average 200 period is 1832.8
The spot price for Silver (XAG/USD) saw a bashful bounce from the lowest level marked in February under 23$ reached due to a drop in United States Gross Domestic Products during the first quarter.
No exciting movement seems coming at the window, since XAG is still trading around 23$, moving around the 1% daily loss.
Due to the rampage of the US DXY hitting its five year highs and breaking the barrier of 103 almost reaching 104 during Thursday session, pushed from the worries about politics and macroeconomics situation with both prices of Gold and Silver being battered.
On a weekly chart analysis the XAG/USD is losing nearly 5% and trades way lower than last week’s highs above 26$.
On a technical side of the analysis XAG/USD during the last session marked a price of 23.13$ with a variation of -0.77%.
- Daily moving average 20 period is 24.72
- Daily moving average 50 period is 24.87
- Daily moving average 100 period is 23.9
- Daily moving average 200 period is 23.82
