 |
| Gold Price Pressured Amidst Mixed News |
The gold price (XAU/USD) has struggled to find direction, remaining inside a one-week-old symmetrical triangle at $1,975. This follows a loss-making week, which was the first in four weeks, as United States Treasury bond yields remained pressured amid mixed headlines. The benchmark US 10-year Treasury bond yield saw a marginal improvement, rising to around 3.378% whilst the two-year counterpart showed mild intraday gains of around 3.797%. Gold prices also remain pressured due to recent fears of banking fallouts.
The preliminary readings of the US S&P Global PMIs for March came in firmer with the manufacturing gauge rising to 49.3 from 47.3 in February, and services PMI rising to 53.8 from 50.6 prior. However, mixed US data and previously hawkish Federal Reserve (Fed) officials’ comments weigh on the gold price. Additionally, geopolitical fears and anxiety before the Fed’s preferred inflation gauge also impact the gold price, which is likely to ease in February.
Technical analysis suggests the gold price is commensurate with the lower tops of the Relative Strength Index (RSI) line and further downside is expected. The recent bearish signal from the Moving Average Convergence and Divergence (MACD) indicator adds strength to the downside bias. The XAU/USD bears face a challenge from the 50-bar Simple Moving Average (SMA) surrounding $1,955 and a stated triangle’s lower line close to $1,960 at the latest, which restricts short-term gold price downside. However, if the gold price breaks $1,955 support, there is a possibility of a slump towards the 50% Fibonacci retracement of the XAU/USD upside from late February to March 20, near $1,....
Gold Prices Continue To Face Pressure
Gold prices continue to face pressure for the second consecutive day, as the United States Treasury bond yields lick their wounds at the five-month lows marked last week. The benchmark US 10-year Treasury bond yield seesaws around 3.378% while the two-year counterpart picks up bids with mild intraday gains of around 3.797%. Recent comments from Minneapolis Fed President Neel Kashkari, who flagged fears of a US recession, have tamed calls for more rate hikes from the US central bank.
The US Core PCE Price Index, which is the Fed's favourite inflation data, is also affecting gold prices. The index is likely to ease in February, so the latest pullback could be the preparations for an upswing after the likely softer US inflation clues. Also weighing on gold prices is Russia’s shifting of nuclear weapons near Belarus, which joins the cautious mood ahead of the Fed’s preferred inflation data.
Technical analysis suggests further downside is expected as the XAU/USD price continues to record lower highs commensurate with the lower tops of the Relative Strength Index (RSI) line. The recent bearish signal from the Moving Average Convergence and Divergence (MACD) indicator supports the downside bias.
Gold Prices Await Banking News and Federal Reserve’s Favorite Inflation
Gold prices are being eyed for their directions as US Core PCE Price Index and banking news become the focus. After snapping four-week uptrend, gold prices remain pressured and see a further downside bias as United States Treasury bond yields remain mixed. Gold prices continue to remain pressured due to recent fears of banking fallouts.
In conclusion, gold prices have been facing pressure due to a number of factors, including mixed US data, fears of banking fallouts, and geopolitical tensions. Technical analysis suggests that further downside is expected, with the XAU/USD price recording lower highs and the Moving Average Convergence and Divergence (MACD) indicator supporting a downside bias. However, upcoming news related to banking and the US Core PCE Price Index, which is the Fed's preferred inflation data, may have an impact on the gold price. Overall, the direction of gold prices remains uncertain, and investors will need to carefully monitor the latest developments in order to make informed decisions about their investments.
