Gold Price Forecast: XAU/USD retreats from weekly highs, back below $1890 on risk aversion By christianborjon Gold XAUUSD Commodities Metals Technical Analysis
decision, the US central bank announced that it would reduce its $8.9 trillion balance sheet on June 1 by $47.5 billion, $30 billion of US Treasuries, and $17.5 billion of mortgage-backed securities .pushed back against 75-bps hikes but would not rule 50-bps increases in a couple of meetings.
Across the pond, the Bank of England hiked rates by 25-bps, though the vote was split 6-3. In its opening statement, the BoE Governor Andrew Bailey said that inflationary pressures intensified since the Ukraine-Russia war and added that inflation is well above the target. He said that risks for UK’s growth are skewed to the downside, and it is expected to slow sharply.The US and the UK central banks portrayed some warnings about the ongoing Covid-19 crisis in China.
Aside from this, the US economic docket featured Initial Jobless Claims for the week ending on April 29, which increased to 200K from 182K foreseen by analysts. The report notes that labor costs surged to 11.6%, showing the tightness of the job market.remains neutral-downward biased, retracing the previous jump to weekly highs around $1909.66 one day after the Fed’s decision. As of writing, XAU/USD price is below the 50 and the 100-day moving averages , a sign of the yellow-metal weakness.
Upwards, XAU/USD traders would face solid resistance at the 100-DMA at $1882.31, followed by March’s lows at $1890 and the $1900 mark. On the other hand, XAU/USD’s first support would be May 3 daily low at $1850.34, closely followed by the 200-DMA at $1835.41, and then January’s 28 YTD low $1780.18.
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