XAUUSD Price Forecast and Fed Speech Impact
Gold/USD, also widely known as XAU/USD, often called the “Yellow Metal,” is a popular forex pair representing gold priced in US dollars. Today, attention will center on the speech from Federal Reserve Governor Christopher Waller, who will discuss “Economic Outlook and Monetary Policy.” Typically, a more hawkish stance from the Fed strengthens the USD, potentially creating short-term bearish pressure on gold prices due to their inverse correlation. Additionally, traders will closely observe updates from US Durable Goods Orders, as stronger-than-expected figures tend to support USD strength, influencing gold’s intraday price action.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h
From a technical perspective on the XAU/USD H4 chart, gold has recently broken a significant resistance level previously challenging to surpass following its substantial decline. Currently, price action has approached the 0.5 Fibonacci extension level, showing initial reactions suggesting a potential retracement phase. A possible scenario could see the price correcting towards the 0.382 Fibonacci extension level before resuming a bullish trajectory. The 9-period Moving Average currently hovers beneath the candles, reinforcing the bullish sentiment. The RSI (14) stands at 66.78, indicating bullish strength, albeit approaching overbought territory. Meanwhile, the Stochastic Oscillator (14,3,1) at 83.18 and 93.40 further suggests that short-term corrections are plausible before continued upward momentum.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
