On Thursday, the gold price (XAU/USD) fell to $2,000 during early Asian trading hours. The downward trend of yellow metal has been supported by good economic statistics in the United States, which has reduced expectations of an impending interest rate cut. At press time, the gold price is $2,007, up 0.07% on the day.
Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to the bulk of its most important trading partners, hits a new 2024 high of over 103.70. US Treasury yields are rising across the curve, with the 10-year yield currently at 4.10%
Investors are confused about when the Federal Reserve (Fed) will begin considering interest rate decreases. According to the CME Fedwatch tool, traders expect a 25 basis point (bps) interest rate drop in March, down from 70% at the beginning of the week.
XAUUSD technical analysis
XAUUSD has touched 2006.5 and is trading near the 72-day EMA, which provides significant support. The reaction to this level will determine the short-term trend of the yellow metal.
If XAUUSD breaks below this support on a retest, it will move to 1975.5.
Otherwise, a retracement back up will be visible.
Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to the bulk of its most important trading partners, hits a new 2024 high of over 103.70. US Treasury yields are rising across the curve, with the 10-year yield currently at 4.10%
Investors are confused about when the Federal Reserve (Fed) will begin considering interest rate decreases. According to the CME Fedwatch tool, traders expect a 25 basis point (bps) interest rate drop in March, down from 70% at the beginning of the week.
XAUUSD technical analysis
XAUUSD has touched 2006.5 and is trading near the 72-day EMA, which provides significant support. The reaction to this level will determine the short-term trend of the yellow metal.
If XAUUSD breaks below this support on a retest, it will move to 1975.5.
Otherwise, a retracement back up will be visible.