FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

XAU/USD holds steady near weekly high, just above $1,750 level

24 August 2022

Gold regains some positive traction for the second successive day, though lacks follow-through. Recession fears continue to weigh on investors’ sentiment and benefit the safe-haven XAU/USD. Hawkish Fed expectations, elevated US bond yields, renewed USD buying cap gains for the metal. Gold attracts some dip-buying near the $1,744 region and turns positive for the second straight day on Wednesday. The XAU/USD climbs back above the $1,750 level during the early European session, closer to the weekly high touched on Tuesday, though any meaningful upside still seems elusive.

Growing worries about a global economic downturn and headwinds stemming from fresh COVID-19 lockdowns in China continue to weigh on investors' sentiment. This is evident from a generally weaker tone around the equity markets, which turns out to be a key factor offering some support to the safe-haven gold. That said, the emergence of fresh US dollar buying might hold back traders from placing aggressive bullish bets around the dollar-denominated commodity.

The overnight knee-jerk reaction to the dismal US PMI prints turns out to be short-lived amid firming expectations for a further policy tightening by the Fed. In fact, the markets are still pricing in at least a 50 bps rate hike move at the September FOMC monetary policy meeting. This remains supportive of elevated US Treasury bond yields, which assists the USD to regain positive traction and might further contribute to capping gains for the non-yielding gold.

Furthermore, Fed Chair Jerome Powell is anticipated to deliver a more hawkish message at the Jackson Hole symposium on Friday, further warranting some caution before positioning for additional gains. Market participants will look for fresh clues about the possibility of a supersized 75 bps Fed rate hike in September. This will play a key role in influencing the near-term USD price dynamics and help determine the next leg of a directional move for gold.

In the meantime, traders on Wednesday will take cues from the US economic docket - featuring Durable Goods Orders and Pending Home Sales data later during the early North American session. This, along with the US bond yields, will drive the USD demand and provide some impetus to gold. Apart from this, the broader risk sentiment might further contribute to producing short-term trading opportunities around the XAU/USD.




Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022

The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world's leading Central banks and the energy crisis in Europe...

19 Sep 2022

Gold gains traction on the back of weaker dollar
Gold gains traction on the back of weaker dollar

The precious’ recent rally from its near year-to-date lows could be attributed to the broader dollar weakness observed in the past week, even though it remains elevated near its 20-year highs...

14 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 12 - 16, 2022

The past week was marked by two significant events. First, the EUR/USD pair updated its 20-year low on Tuesday, September 06 once again, falling to 0.9863...

12 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.