By NewsBlogger Gold prices have been fluctuating due to various factors, including a rise in US Treasury yields and the US Dollar Index, leading to a plunge in gold prices during the North American session, with support levels identified and potential for higher levels if XAU/USD stays above $2,150.00.
At a glance
- US Consumer Price Index exceeded expectations, leading to a rise in US Treasury yields and the US Dollar Index.
- Traders of XAU/USD reacted to strong US data by booking profits, causing gold prices to plunge.
- Support levels for XAU/USD are identified at various price points, with the potential for higher levels of above $2,150.00
- Gold prices stabilized in Asian trade after surging to $2,200, settling at $2,159.32 an ounce.
- Positive economic indicators in the US could reduce gold’s safe-haven demand, impacting gold, platinum, and silver prices.
The details
Gold prices have been experiencing significant fluctuations in the market due to various factors.
The US Consumer Price Index in February exceeded expectations, with a year-over-year increase of over 3.1%, and the core CPI reaching 3.8% year-over-year.
This led to a rise in US Treasury yields, particularly the US 10-year benchmark note rate, and an increase in the US Dollar Index (DXY) by 0.18% to 102.92.
Traders of XAU/USD
reacted to the strong US data by capitalizing on their gains and booking profits, resulting in a plunge in gold prices during the North American session.
The Relative Strength Index (RSI) indicator fell below the 80.00 level, indicating potential downward pressure on gold prices.
Support levels for XAU/USD were identified at $2,150.00, $2,123.80, $2,100.00, $2,088.48, and $2,065.60. However, if XAU/USD manages to stay above $2,150.00, it could potentially test higher levels at $2,184.76, $2,195.15, and $2,200.00.
In Asian trade
gold prices stabilized after a surge to $2,200. Spot gold settled at $2,159.32 an ounce, while gold futures expiring in April saw a slight decline to $2,164.45 an ounce.
Both instruments were down approximately 2% from their record highs.
The US economy showed resilience, with inflation surpassing the Federal Reserve’s 2% annual target.
Traders maintained expectations of a 70% chance for a 25 basis point cut in June, with a focus on producer price index and retail sales data for further insights.
Despite the positive economic indicators
strength in the US economy could potentially reduce gold’s safe haven demand.
Gold, platinum, and silver faced pressure from the strong performance of the dollar and US Treasury yields.
Economists at ANZ Bank highlighted a significant price rise of 5% for XAU/USD after breaking the key resistance level of $2,140. Overall, gold prices remained volatile due to a combination of economic data, market sentiment, and global economic factors, indicating a complex and dynamic trading environment for investors.
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| fxstreet.com |
|---|
| – Gold price plunged late in the North American session on Tuesday – The US Consumer Price Index in February exceeded an estimated 3.1% YoY – Underlying inflation, as measured by the core CPI, stood at 3.8% YoY – US Treasury yields edged up as reflected by the US 10-year benchmark note rate – The US Dollar Index (DXY) gained 0.18% to 102.92 – XAU/USD traders capitalized on their gains by booking profits following strong US data – The Relative Strength Index (RSI) indicator pushed below the 80.00 level – Support levels for XAU/USD are at $2,150.00, $2,123.80, $2,100.00, $2,088.48, and $2,065.60 – If XAU/USD stays above $2,150.00, it could test higher levels at $2,184.76, $2,195.15, and $2,200.00. |
| uk.investing.com |
|---|
| – Gold prices steadied in Asian trade after a tumble from record highs – Gold surged to $2,200 earlier in the week – Spot gold steadied at $2,159.32 an ounce – Gold futures expiring in April fell 0.1% to $2,164.45 an ounce – Both instruments were down about 2% from record highs – Spot gold hit a record high of $2,195.20 an ounce – Gold futures hit a peak of $2,203.0 an ounce on Monday – U.S. inflation grew slightly more than expected in February – CPI data showed inflation well above the Fed’s 2% annual target – Traders maintained bets on a 70% chance for a 25 basis point cut in June – Producer price index and retail sales readings are in focus for more cuts – U.S. economy showing signs of resilience – Strength in the U.S. economy could reduce gold’s safe haven demand – Gold still sitting on strong gains in 2024 – Gold and other precious metals pressured by strength in the dollar and U.S. Treasury yields – Platinum futures steadied around $927.90 an ounce – Silver futures fell 0.4% to $24.297 an ounce – Copper futures expiring in May fell 0.2% to 3.9283 a pound – China may roll out more stimulus measures to support economic recovery – Beijing set a GDP target for 2024 at 5%, the same as 2023 |
| fxstreet.com |
|---|
| – Gold’s price broke the key resistance of $2,140 last week – Prices rose by 5% – Economists at ANZ Bank analyzed XAU/USD technical outlook |
