Gold managed to hold its ground on safe-haven flows and ended up closing in the upper half of its weekly range above $1,940. As FXStreet’s Eren Sengezer notes, the technical outlook points to a bullish tilt in the near-term.
US March inflation report stands out in economic calendar.“On Tuesday, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data. On a yearly basis, CPI is expected to advance to a fresh multi-decade high of 8.3% in March from 7.9% in February.
A stronger-than-expected CPI print could ramp up the odds for two successive 50 bps Fed rate hikes and lift US T-bond yields even higher.”
“The European Central Bank (ECB) will announce monetary policy decisions on Thursday. The bank is widely expected to keep its settings unchanged but a hawkish tilt in forward guidance could open the door to a decisive recovery in EUR/USD and weigh on the dollar. In that case, XAU/USD should be able to edge higher. On the other hand, the bank might turn cautious and focus on the potential negative impact of a protracted Russia-Ukraine conflict on economic activity rather than inflation. In such a scenario, EUR/USD could come under bearish pressure making it difficult for gold to gain traction.”
“$1,950 (Fibonacci 38.2% retracement of the latest uptrend) aligns as first technical resistance. In case gold rises above that level and starts using it as support, it could target $1,970 (static level) and $1,990 (Fibonacci 23.6% retracement).”
“Strong support seems to have formed at $1920 (Fibonacci 50% retracement). With a daily close below that level, sellers could take action and drag gold toward $1,910 (50-day SMA) and $1,900 (psychological level).”
EUR/USD retreats to 1.0900 after early rebound.EUR/USD has lost its traction after having recovered toward the mid-1.0900s earlier in the day. With the greenback holding its ground against its rivals amid rising US Treasury bond yields, the pair seems to have steadied near 1.0900. Investors will keep a close eye on upcoming Fedspeak.
GBP/USD meets resistance near 1.3050.GBP/USD has touched a fresh daily top above 1.3050 but struggled to preserve its bullish momentum. In the absence of high-impact macroeconomic data releases, the risk-averse market environment makes it difficult for the pair to continue to push higher.
Gold extends daily rally beyond $1,960
Following a short-lasting consolidation phase near $1,950, gold has extended its daily rally to a fresh multi-week high above $1,960. The souring market mood amid heightened recession fears and a protracted Russia-Ukraine conflict helps the yellow metal find demand.
What Cardano price needs to do to break out to $1.60.Cardano price has suffered a recent pullback, as 3.4 million addresses were underwater. Nevertheless, analysts have predicted a recovery in Cardano price, and set target at $1.60.