Gold, XAU/USD, US Dollar, Treasury Yields, Meta, NZD, Deutsche – Talking Points
- gold Reflecting the general market malaise as US data looms later today
- Treasury yields and real yields remain at low levels however American dollar It seems directionless
- All eyes will be on us gross domestic product And PCE data. Will XAU/USD Gain Momentum?
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Gold price volatility remains somewhat moribund with the precious metal bouncing around either side by $2000 an ounce so far today. Markets look alert ahead of US GDP and core PCE data due later with the US dollar holding steady so far today
Treasury yields also stabilized after falling earlier in the week. The benchmark 10-year bond is still below 3.50%.
Real yields continue to decline with the same part of the curve near 1.20%, particularly below the 1.36% peak seen last week.
The G10 currencies had a weak start to Thursday although the New Zealand dollar managed to rally slightly, reclaiming the area above 0.6140.
After the North American close, Meta revised its revenue forecast for the second quarter to $32 billion, above forecasts of $29.48 billion. Futures point to a modest positive start on Wall Street later today.
Asia Pacific stocks also had a quiet session today. Deutsche Bank announced that it missed its first-quarter estimates. They reported that revenue was €2.36 for the period versus the €2.53 billion expected.
WTI futures is near $77.50 a barrel while the Brent contract is just under $78 at press time.
The full economic calendar can be viewed here.
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Technical analysis of gold
Gold has been detected in the 1934-2049 range for about six weeks and is still within an uptrend channel.
The lack of a short-term trend is characterized by price conglomeration near the 10- and 21-day simple moving averages (SMA).
A range breakout could add momentum to this trend but notable support and resistance levels are on both sides.
On the upside, there is a double top created by the 2075 all-time high in April 2020 and the failed attempt to break above it in March 2022 when the peak was reached in 2070.
On the downside, the 1885-1895 area appears to be a major support area. Within it lies a 100-day simple moving average, a previous low, a trailing stop and an ascending trend line.
– By Daniel McCarthy, Strategist for DailyFX.com
Please contact Daniel via @tweet on Twitter