Home Forex XAU/USD bounces off monthly lows, still under pressure near critical $1,820

XAU/USD bounces off monthly lows, still under pressure near critical $1,820

by SuperiorInvest


  • US Q4 GDP revised lower, inflation indicators revised higher.
  • Jobless Claims, Chicago Fed Activity Beats Expectations.
  • Gold bounced above $1,830.

Gold prices rebounded after hitting fresh mid-month lows willingness to take risks and the intraday turnover of the US dollar. XAU/USD bottomed at $1,817, its lowest level since late December, after the release of US economic data, before bouncing back to the $1,830 area.

Data published in the US were mixed. Initial unemployment claims fell to 192,000, the lowest level in three weeks. Second 4th quarter GDP reading reported a lower annualized growth rate of 2.7% below the previous estimate of 2.9%. Inflation indicators GDP reports have been revised above. The Chicago Fed National Activity Index rose from -0.43 to 0.23, beating expectations.

Investors continue to digest FOMC minutes and new economic numbers. The Dow Jones is up 0.43% and the Nasdaq is up 0.50%. US yields are slightly lower, hovering near monthly highs.

The American dollar peaked after the release of US data, while gold bottomed at $1,817, its lowest since Dec. 30. The yellow metal then bounced back towards $1,830, but was unable to get back above this key short-term level.

After the opening bell on Wall Street, the dollar regained strength, pushing XAU/USD back to the downside. XAU/USD is approaching the $1,820 area, which is critical. Consolidation below would open the door for further weakness, initially targeting $1,812.

XAU/USD Daily Chart

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