Gold price (XAU/USD) bounces off the 200-bar EMA but is under slight selling pressure and trims losses on Easter Monday, as the bullion tries to hold above $1,995. While XAUUSD marked the first weekly gains in three, the China-linked risk-off mood and the US dollar’s rebound are putting some downside pressure on the precious metal. Selling pressure is causing investors to trim their gold exposure, but its long-term outlook remains positive as a valuable safe-haven asset.
South Korea joined the US in defending Taiwan, while the US signaled it would send arms help to Taipei. The terms of tension remain unclear, but the situation puts downside pressure on XAU/USD. Additionally, better-than-forecast NFP prints renew hawkish Fed bets, increasing the likelihood of a 0.25% rate hike by the US central bank.
While weak US statistics put some downside pressure on the precious metal, downbeat US Treasury bond yields allow Gold buyers to remain optimistic ahead of the US CPI data and the latest FOMC Monetary Policy Meeting Minutes.
The S&P 500 Futures and US Treasury bond yields remain pressured, with the benchmark bond coupons extending the previous day’s losses as the market rushes toward risk-safety amid economic slowdown fears. Meanwhile, the US Dollar Index prints mild gains around 102.20.
XAU/USD broke the one-week-old ascending support line and the 50-bar EMA at $2,007. The 200-EMA and the previous resistance line from March 20, respectively near $1,990 and $1,982, can challenge the Gold price downside. Recovery moves remain elusive unless crossing the 50-EMA hurdle of $2,007.
The Gold traders should pay attention to the geopolitical headlines for intraday directions while US inflation and Fed Minutes will be crucial for a clear guide afterward. Furthermore, as forex traders look for potential trading opportunities, they may analyze the performance of the US Dollar Index (DXY) and US Treasury bond yields to assess market sentiment and adjust their positions accordingly.
Forex traders around the world are keeping a close eye on the XAU/USD as geopolitical tensions and economic data continue to impact the precious metal. The recent escalation in US-China tensions has put downside pressure on Gold, with South Korea joining the US in defending Taiwan and signaling a potential arms sale. Furthermore, better-than-expected NFP prints have renewed hawkish Fed bets, increasing the likelihood of a 0.25% rate hike by the US central bank, which could further weigh on XAU/USD. While weak US statistics have put some pressure on the precious metal, downbeat US Treasury bond yields have allowed Gold buyers to remain optimistic. As traders assess market sentiment, they are analyzing the performance of the US Dollar Index and US Treasury bond yields to make informed trading decisions. The coming days will be crucial for Gold, with traders closely watching for any significant geopolitical developments and economic data releases.