Gold Weakens on Fed Statement
Gold (XAU/USD) prices maintained its bid tone through the first half of the European session on Wednesday, albeit lacked any follow-through selling as traders preferred to wait for the release of US consumer inflation figures. Meanwhile, the US Dollar (USD) attracted some buyers after Federal Reserve (Fed) Chairman Jerome Powell’s hawkish remarks on Tuesday. This, along with a generally positive risk tone, undermined the commodity for the second straight day.
However, concerns over US President Donald Trump’s fresh levies on commodity imports and promised reciprocal tariffs, along with geopolitical risks, should continue to act as a tailwind for the safe-haven Gold prices.
This, in turn, warrants some caution before confirming that XAU/USD has topped out in the near term and positioning itself for any meaningful corrective slide from all-time tops, around the $2,942-$2,943 area touched on Tuesday amid trade war concerns.
RECOMMENDATION
- Buy if price moves to $2,892
- Sell if price moves to $2,882
Resistance Level 2: $2,906
Resistance Level 1: $2,899
Support Level 1: $2,875
Support Level 2: $2,868
Note:
This article is only an analysis and not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
