FX.co ★ XAU/USD, GOLD

Gold prices remained stagnant during Wednesday's North American trading session. This stability comes despite rising US Treasury yields and a strengthening dollar. The lack of significant economic data keeps investors cautious, with focus shifting to upcoming reports like unemployment claims and consumer confidence surveys. Even with minor fluctuations, gold continues to hold above $2,300. This resilience is likely fueled by ongoing speculation of interest rate cuts by the Federal Reserve. Lower interest rates tend to benefit gold, as it makes the non-interest bearing metal a more attractive investment. Although Boston Fed President Susan Collins expressed confidence in bringing inflation down to 2% and maintaining a "somewhat restrictive" policy, a weaker-than-expected US jobs report has sparked concerns about a potential shift towards faster rate cuts. China's central bank continues to be a major player, steadily accumulating gold reserves for 18 consecutive months. This physical demand, coupled with bullish technical indicators like the Relative Strength Index (RSI), suggests ongoing momentum in favor of gold buyers. A breakout above $2,352, the previous high from April, could open doors to even higher prices.

However, if the price dips below $2,300, a further decline might be on the horizon. The next potential support level lies at the 50-day simple moving average (SMA) of $2,249. With economic data releases on the horizon and the Federal Reserve's stance on interest rates yet to be fully determined, the coming days could bring more clarity to the gold market's direction. On the 4-hour chart, gold prices are trading within a sideways channel between 2,277 and 2,332 and are holding close to the 50-period simple moving average (SMA) and the mid-level of the Bollinger band. Technical oscillators indicate that the RSI is decreasing and approaching the neutral threshold of 50, while the MACD is losing momentum below its trigger line in the positive region. Both show how the price's momentum is waning. Resistance to upward movements is probably located at the upper Bollinger band, which is 2,332. A significant resistance level is also present at 2,362, which is taken from the April 16 inside swing low and is situated ahead of the crucial 2,400 mark.