In the midst of a three-week winning streak, the gold price (XAUUSD) is preparing for its highest weekly gains since early November. Even if the markets are calm on Friday following a turbulent week. Hence, with cautious optimism. The price of the precious metal grinds higher past the $1,925 resistance.
Second-tier US statistics, bond market movements, and the Fed’s expected 0.25% rate rise are all being watched for obvious indications.
The bearish US Treasury bond rates and the efforts of global authorities and bankers to prevent a repeat of the financial crisis of 2008 may strengthen the positive bias for XAUUSD.
Even though the Federal Reserve (Fed) is probably certain to raise interest rates by 25 basis points (bps), the mixed US data may cast doubt on future rate increases. In addition, one of the greatest economies in the world, China, has high aspirations for a sustained customer, who also maintain the XAUUSD purchasers’ optimism.
Conversely, because the restrictions seem restrictive, traders don’t seem as convinced by the most recent defenses of the worldwide banking industry.
As a result, gold traders are in a precarious position ahead of the Federal Open Market Committee (FOMC) monetary policy meeting the following week. The key central banks have also reportedly blocked information on the causes of the most recent baking rout and rejected expectations of easy rate hikes.
Gold Technical Analysis
The daily chart for the XAUUSD pair demonstrates that it trades in the red but still has a positive bias. Bullish moving averages continue to be developed above the brilliant metal. With the 20 Simple Moving Average (SMA) heading upward over the lengthier ones.
The Relative Strength Index (RSI) indicator consolidates around roughly 64. As the Momentum indicator continues to advance close to overbought values. It’s important to note that XAUUSD continues to trade above the $1,900 price range.
The pair’s bullish strength has temporarily diminished in the short term. Although there are no indications of an impending collapse.
A bullish 20 SMA with an upward slope above the lengthier. Ones offers dynamic support at about $1,910.25. on the 4-hour chart. Indicator of Momentum is perched above its The RSI pulls back from overbought values. But still maintains firmly into positive territory, at about the 100 mark.
