As the Asian session dawned on a Friday morning, the gold price rose remarkably, hovering around $1,948 per troy ounce. This resurgence, akin to a phoenix rising from its ashes, came after enduring four consecutive weeks of losses. An intriguing catalyst behind this ascent lies in the US Dollar (USD) retreat, casting a favorable shadow upon the precious metal's trajectory.
Understanding the Catalysts Delving into the intricate dance of market dynamics, one can discern the nuanced factors that propelled gold's recovery. Recent robust statistics from the United States have instilled renewed confidence. A pivotal contributor to this sentiment shift lies in the hawkish undertones echoing through the Federal Reserve's latest minutes. Thursday witnessed the United States Philadelphia Fed Manufacturing Survey painting a vivid picture: it displayed the most robust reading since the ancient days of April 2022, marking a year's first positive outcome. The survey gauge surged to an impressive 12.0 for August, eclipsing the somber readings of -13.5 previously recorded and the anticipated -10.0.
Short-term Outlook for XAU/USD The XAU/USD pairing outlook unfurls before us, revealing its current complexion. A bearish hue tinges this snapshot, with the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both stationed within the confines of hostile terrain. The RSI, positioned beneath its midline, takes on a southerly trajectory, symbolic of the prevailing sentiment. A corroborative stance is assumed by the MACD, adorned with crimson bars that amplify the crescendo of bearish momentum. Peering more deeply into the technical tapestry, we discern the pair's residence below the 20, 100, and 200-day Simple Moving Averages (SMAs). This configuration paints a panorama where the reins of control firmly rest in the grasp of the bears, manifesting their dominance over the grand tableau.
