Gold price (XAU/USD) retains its positive bias through the first half of the European session on Thursday and remains within striking distance of the record high touched on February 24. Persistent worries about the potential economic fallout from US President Donald Trump's aggressive trade policies benefit the safe-haven bullion for the third successive day. Apart from this, the growing acceptance that the Federal Reserve (Fed) will cut interest rates several times this year amid worries about a tariff-driven US economic slowdown further underpins the non-yielding yellow metal.
Meanwhile, the US Dollar (USD) gains some positive traction and looks to build on the overnight bounce from its lowest level since October 16. This, in turn, might hold back traders from placing fresh bullish bets around the Gold price and cap any further appreciating move. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the XAU/USD pair remains to the upside. Investors now look forward to the release of the US Producer Price Index (PPI) to grab short-term opportunities later during the early North American session.
From a technical perspective, the overnight sustained move beyond the $2,928-2,930 horizontal barrier supports prospects for a move towards challenging the all-time peak, around the $2,956 area touched on February 24. Given that oscillators on the daily chart are holding comfortably in positive territory and are still away from being in the overbought zone, some follow-through buying will be seen as a fresh trigger for bulls. This, in turn, will set the stage for an extension of the recent well-established uptrend witnessed over the past three months or so.
On the flip side, the $2,930-2,828 resistance breakpoint now seems to protect the immediate downside, below which the Gold price could accelerate the slide back towards the $2,912-2,910 intermediate support en route to the $2,900 round figure. This is followed by the weekly low, around the $2,800 region. This is followed by the $2,860 zone, which if broken decisively could pave the way for deeper losses. The XAU/USD pair might then slide towards the late February swing low, around the $2,833-2,832 region, before eventually dropping to the $2,800 mark.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.08% | -0.00% | -0.31% | 0.09% | 0.35% | 0.29% | -0.10% | |
EUR | -0.08% | -0.09% | -0.37% | 0.00% | 0.27% | 0.23% | -0.17% | |
GBP | 0.00% | 0.09% | -0.33% | 0.09% | 0.37% | 0.32% | -0.08% | |
JPY | 0.31% | 0.37% | 0.33% | 0.39% | 0.67% | 0.61% | 0.23% | |
CAD | -0.09% | -0.00% | -0.09% | -0.39% | 0.28% | 0.22% | -0.18% | |
AUD | -0.35% | -0.27% | -0.37% | -0.67% | -0.28% | -0.05% | -0.43% | |
NZD | -0.29% | -0.23% | -0.32% | -0.61% | -0.22% | 0.05% | -0.36% | |
CHF | 0.10% | 0.17% | 0.08% | -0.23% | 0.18% | 0.43% | 0.36% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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