The Gold price (XAU/USD) is trading at $2,015, with a week-start corrective bounce. The mixed updates on United States data and Federal Reserve talks, together with unclear statements from US policymakers ahead of the debt ceiling talks, are affecting the XAU/USD’s week-start bounce. The anxiety ahead of these talks also prompts XAU/USD buyers. The upswing of the gold price is thanks to the downbeat US Dollar and hopes for more demand from China, a key XAU/USD consumer. The Federal Reserve (Fed) signals are mostly upbeat. Meanwhile, Wall Street closed with mild gains, and the US Treasury bond yields dribbled in a positive territory.
The Gold Price Forecast for XAU/USD amid Mixed Sentiments Weighing Amid United States Data and Debt Ceiling Talks
The Gold price (XAU/USD) is trading at $2,015, with a week-start corrective bounce. However, the mixed updates on United States data and Federal Reserve talks, together with unclear statements from US policymakers ahead of the debt ceiling talks, are affecting the XAU/USD’s week-start bounce. The anxiety ahead of these talks also prompts XAU/USD buyers.
Gold Price Rises Amid Softer US Dollar, Cautious Optimism and China Updates
The upswing of the gold price is thanks to the downbeat US Dollar and hopes for more demand from China, a key XAU/USD consumer. Even so, the United States NY Empire State Manufacturing Index since April 2020, to -31.8 for May, joined mixed Fed talks to also weigh on the US Dollar. The Federal Reserve (Fed) signals are mostly upbeat. Meanwhile, Wall Street closed with mild gains, and the US Treasury bond yields dribbled in a positive territory.
Fears of US Default Weigh on XAU/USD Amid Pre-Data Anxiety
While the aforementioned catalysts allowed the Gold price to remain firmer, the market’s cautious mood recently prompted the XAU/USD bulls. The pre-data anxiety ahead of the key US fiscal talks and China’s Retail Sales and Industrial Production for April, as well as the US Retail Sales for the said month, appears to weigh on the Gold price.
Gold Price Technical Analysis
Gold price prods the lower line of a two-month-old bullish channel as the XAU/USD traders brace for the key United States Retail Sales and debt ceiling negotiations among the US policymakers. Given the steady Relative Strength Index (RSI) line, placed at 14, as well as the sluggish signals from the Moving Average Convergence and Divergence (MACD) indicator, the Gold price is likely to grind lower. However, the 200-SMA adds strength to the $2005 support, making it the key for the XAU/USD bears to break before taking control. Even if the Gold price drops below $2005, the $2,000 round figure may act as an extra filter towards the south before directing.