Xauusd forecast on Monday
For the analysis of XAUUSD (Gold vs. US Dollar) on Monday, January 20, 2025, here are the key points based on the latest market trends and technical indicators:
- Price Levels: Gold is expected to open around the $2,690 per ounce mark on Monday, with a bullish bias. Support levels are anticipated around $2,678, with resistance potentially at $2,705.
- Technical Outlook: Recent analysis indicates that gold is consolidating above the $2,600 support level, suggesting a strong foundation for potential upward movements. The market is watching for a breakout above $2,705, which could signal an extremely bullish trend. Conversely, if gold fails to hold above $2,678, there might be a sharp correction.
- Market Sentiment: The sentiment around gold remains positive due to ongoing geopolitical risks, potential inflationary pressures, and the expectation of dovish monetary policy from the Federal Reserve. This environment bolsters gold’s position as a safe-haven asset.
- Economic Influences: Investors are particularly attentive to US economic indicators like the Consumer Price Index due this week, which could sway gold prices. A higher-than-expected CPI might lead to a stronger dollar, potentially putting downward pressure on gold, while a lower CPI could propel gold prices higher.
- Trading Signals:
- Buy Signal: If gold holds above $2,678 with a clear breakout above $2,705, traders might look to enter long positions, targeting levels around $2,710 or higher.
- Sell Signal: A break below $2,678 could signal sellers to take action, with targets potentially at $2,650 or lower, depending on the momentum of the sell-off.
- External Factors: The market is also sensitive to developments regarding Donald Trump’s policies, considering the upcoming inauguration on that Monday. Any indication of his administration’s approach to trade, tariffs, or international relations could directly impact gold prices.
- AUD/USD Price Forecast: Australian Dollar faces wrath of RBA’s dovish hike
AUD/USD trades sharply lower as RBA’s dovish hike weighs heavily on the Australian Dollar. The communication from the RBA signaled that the bar for another interest rate hike is high. The outcome of US midterm elections is expected to have a short-term pressure on the US Dollars. The Australian Dollar (AUD) underperforms its major currency… Read more: AUD/USD Price Forecast: Australian Dollar faces wrath of RBA’s dovish hike - Gold: Recovery from one-year low remains fragile.
ING commodities strategists Warren Patterson and Ewa Manthey say Gold rebounded 1.85% after last week’s sharp sell-off, helped by lower Oil prices and bargain hunting. The metal recovered from a one-year low as easing US-Iran tensions reduced inflation concerns, but they caution that higher rate expectations and a stronger Dollar limit the scope for a… Read more: Gold: Recovery from one-year low remains fragile. - Euro edges up against US Dollar in countdown to US Midterm elections
Euro ticks higher against the US Dollar amid caution ahead of US Midterm elections. ING says Democrats have a 70-72% chance of taking both the House and the Senate. Investors also await the US JOLTS Job Openings and the flash Eurozone HICP data. The Euro (EUR) trades marginally higher at around 1.1195 against the US… Read more: Euro edges up against US Dollar in countdown to US Midterm elections - Euro holds modest gains as Oil prices tumble on US-Iran diplomacyEUR/USD holds modest gains as the US Dollar recovers from earlier lows. Positive US-Iran diplomatic headlines push Oil prices sharply lower. ECB policymaker Peter Kažimír signals that further interest rate hikes may be needed. EUR/USD trades with a bullish bias on Monday but lacks upside momentum as the US Dollar (USD) trims part of its… Read more: Euro holds modest gains as Oil prices tumble on US-Iran diplomacy
- Gold rebounds toward $4,000 as Iran peace hopes sink Oil, US DollarGold rallies over 2% to $3,954 as US Dollar weakness accelerates. US 10-year Treasury yields drop nearly six basis points to 4.871%. December Fed hike odds hold near 75% amid stronger US manufacturing. Gold (XAU/USD) rebounds and gains over 2% on Monday as crude prices drift lower, dragging the US Dollar (USD) lower due to… Read more: Gold rebounds toward $4,000 as Iran peace hopes sink Oil, US Dollar
- Gold bulls seem hesitant below $3,900 as Fed hike bets offset weak USDGold attracts some buyers on Monday as hopes for Iran diplomacy undermine the safe-haven USD. Ukrainian attacks on Russia and US threats of further military action keep a lid on the latest optimism. Fed rate hike bets further limit USD losses and cap the commodity ahead of this week’s US macro releases. Gold (XAU/USD) clings… Read more: Gold bulls seem hesitant below $3,900 as Fed hike bets offset weak USD
- Euro: Mixed outlook as ECB weighs energy shock .Norman Liebke at Commerzbank notes the ECB delivered a widely expected pause, while Christine Lagarde signalled that another rate hike in December remains possible and largely priced in. The Euro’s path beyond December will hinge on energy prices and potential second-round effects on wages and inflation expectations. Higher bond yields already tighten financing conditions, limiting… Read more: Euro: Mixed outlook as ECB weighs energy shock .
- Gold bears retain control below $4,000 as hawkish Fed bets back further lossesGold adds to the previous day’s heavy losses and slides back closer to the monthly low. Oil-driven inflation fears bolster Fed hike bets, exerting pressure on the precious metal. Declining US bond yields weigh heavily on the USD, although they fail to support the bullion. Gold (XAU/USD) extends its intraday breakdown momentum below the $4,000… Read more: Gold bears retain control below $4,000 as hawkish Fed bets back further losses
- Euro drops against Canadian Dollar ahead of ECB policy decisionEuro weakens ahead of the ECB’s rate decision while energy-driven inflation risks persist. ECB expected to hold its deposit rate at 2.50%, with traders seeking hints on possible December hikes. Bank of Canada raised rates by 25 bps to 2.50%, boosting CAD and signaling potential future tightening. EUR/CAD continues its losing streak that began on… Read more: Euro drops against Canadian Dollar ahead of ECB policy decision
- Gold drifts lower as Fed rate hike bets and Middle East tensions boost USDGold meets with fresh supply on Thursday amid the emergence of some USD dip-buying. Hawkish Fed expectations and geopolitical risks revive demand for the safe-haven buck. Traders now look to the US Q3 GDP report and the crucial PCE Price Index for some impetus. Gold (XAU/USD) comes under some renewed selling pressure on Thursday, sliding… Read more: Gold drifts lower as Fed rate hike bets and Middle East tensions boost USD
- Gold stalls its recovery as markets brace for Fed interest rate decisionGold pauses its two-day rebound as traders await the Fed’s interest rate decision. The Fed is expected to hold rates steady, with traders looking for clues on a December hike. XAU/USD remains below key daily moving averages, with immediate support at $4,000-$3,950. Gold (XAU/USD) consolidates losses on Wednesday as investors await the Federal Reserve’s (Fed)… Read more: Gold stalls its recovery as markets brace for Fed interest rate decision
- Euro edges higher vs CAD as BoC rate hike lands in line, focus shifts to ECBEUR/CAD edges slightly higher on Wednesday, despite the Canadian central bank’s decision to raise interest rates. The Bank of Canada increased its policy rate by 25 basis points to 2.50%, in line with market expectations. Investors now turn to Thursday’s European Central Bank decision, with another rate hike possible in December. EUR/CAD trades around 1.5640… Read more: Euro edges higher vs CAD as BoC rate hike lands in line, focus shifts to ECB
- Gold recovers above $4,000 as Oil prices ease, Fed decision loomsGold gained nearly 1% on Tuesday as easing oil prices lent some support. A stronger US Dollar keeps the metal’s gains in check ahead of Wednesday’s Fed interest rate decision. The technical picture remains weak, with momentum indicators favouring sellers. Gold (XAU/USD) edges higher during American trading hours on Tuesday after trading in negative territory… Read more: Gold recovers above $4,000 as Oil prices ease, Fed decision looms
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