Rising gold, US FOMC and weak GDP at Play – FX leaders – Rayrice Forex News

Rising gold, US FOMC and weak GDP at Play – FX leaders

Gold prices (XAU/USD) are struggling to extend their two-day gains as buyers and sellers battled a three-week high in Friday’s Asian session. However, the precious metal recently fell below $1,754 as the US dollar tracks yields, leaving them bearish ahead of key inflation data. The US Dollar Index (DXY) is at its lowest level since July 2005, holding the 106.00 level. The greenback index fell for two days as investors eased concerns about the Fed’s hawkishness.

On the other hand, a correction rebound in US Treasuries after revisiting multi-day lows adds weight to the mix of growth triggers. Gold XAU/USD rate. Still, U.S. 10-year Treasury yields are hovering around 2.67 percent, the lowest levels since early April, while 2-year bond coupons are hovering at a three-week low, down 0.14 percent on the day after recently trading at 2.86 percent.

XAU/USD

Gold traders should follow US Q2 GDP flash readings following Fed Chairman Jerome Powell’s hints of “neutral rates”, which were to celebrate and add to the US dollar’s weakness, which showed a “technical slowdown” after a second straight decline. Higher. However, preliminary estimates of US Q2 GDP were published ahead of a -0.9 percent annualized figure of 0.5 percent and -1.6 percent. Additionally, initial jobless claims in the United States rose by 253K, up from 256K in the week ended July 22.

However, US leaders, including Fed Chair Powell and Treasury Secretary Janet Yellen, have tried to dismiss the idea of ​​a “technical recession” after US Q2 GDP fell for the second straight quarter and scoffed at the idea. The same questions are being asked of central banks, which have to hike rates to control inflation. In addition, negotiations between US President Joe Biden and his Chinese counterpart Xi Jinping have largely gone well, putting pressure on the greenback’s interest in a safe haven.

Gold (XAU/USD) Technical View

Gold price managed to breach and hold above 1726.60, reactivating the corrective bullish trend and paving the way for new advances starting with a test of 1755.70.

As a result, a bullish bias is recommended for today with the support of the EMA50, understanding that breaking the 1726.60 and 1715.65 levels will end the suggested positive trend and put pressure on the price to reset the main bearish trend.

Today’s trading range may be between 1725.00 support and 1760.00 resistance.

Today’s projected trend: bully

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