Daily Price Outlook

The price of gold, XAU/USD is now trading around 1,903. After dropping from a six-week high in the previous session, gold prices continued to decline on Wednesday as fears over a banking crisis in the country faded, and a mixed figure on US inflation created some confusion over the Federal Reserve's attitude on monetary policy.

Bank Crisis Subsides

In the last few days, the collapse of American banks caused a rush toward safe havens, which caused the price of yellow metal to rise rapidly. However, following the failure of the Silicon Valley Bank, the US government took action to reaffirm public confidence in the banking industry.

The Fed moved quickly to loosen restrictions on bank borrowing. The White House also assured SVB depositors that it would cover withdrawal costs.

Therefore, when concerns about the banking sector spread following the collapse of SVB last week faded, investors surged into stocks in US markets overnight, and gold prices were on edge.

US Inflation has Slowed

Meanwhile, the Consumer Price Index (CPI), which measures inflation in the US, eased. The US CPI and CPI ex Food and Energy met 6.0% and 5.5% YoY market predictions, below 6.4% and 5.6% respective prior readings.

After the CPI report, Reuters said that a government report showed US inflation stayed high in February, and fears of a long-term financial crisis faded. Therefore, the Federal Reserve might raise its benchmark rate by a quarter percentage point next week and again in May.

The US Dollar Index (DXY) picked up bids to retest the intraday high of 103.76 after the news that the Fed might raise its benchmark rate. That puts downward pressure on the price of gold. The yield on 10-year US Treasury bonds increased to 3.678%.

The hawkish Fed wagers and positive US Treasury bond rates enable the US Dollar to maintain its strength and provide XAU/USD bears reason for optimism.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1893            1913

1885            1923

1874            1932

Pivot Point: 1904

Gold (XAU/USD) – Technical Outlook

The price of gold experienced a temporary negative pressure, causing it to settle within the bullish pennant's pattern once again. However, new positive signals from the stochastic indicator are expected to motivate the price to continue its bullish trend for the day, with the next target located at $1,928.60.

As such, we maintain a bullish outlook, provided that the price remains stable above $1,878.80. Any continued decline and a breach of this level may lead to further losses, potentially reaching the $1,828.70 areas.

For today's trading, we anticipate a trading range between support at $1,890.00 and resistance at $1,928.00.

Daily Price Outlook

The price of gold, XAU/USD, is currently trading at $1,814.99 and remaining stable as traders await the release of United States jobs data. On Wednesday, Federal Reserve Chair Powell addressed the House Financial Services Committee and emphasized the Fed's reliance on data. Powell also stated that the

Repetitive Remarks of Federal Reserve Chairman

Fed had underestimated the resilience of GDP and inflation, supporting the central bank's hawkish stance. As a result, market participants anticipate a 50 basis point rate increase in March, compared to the 0.25% forecasted last week.

Following the hawkish comments made by Fed Chair Powell, the US dollar gained strength against other major currencies and is currently trading at 105.58. Additionally, the yield on the 10-year bond rose to 3.991%.

The price of gold bounced back from a low of one week but didn't show much activity as Powell repeated his hawkish stance in front of the House Financial Service Committee.

US Economy and Gold: How Economic Data Impacts the Price of Gold

Positive economic data from the US has resulted in downward pressure on the XAU/USD market, despite repeated remarks from Fed Chair Powell offering relief to gold traders.

On Wednesday, the US ADP Employment Change rose to 242K in February, exceeding expectations of 200K and the revised figure of 119K for the previous period.

Additionally, the US JOLTS Job Openings for January increased to 10.824M, surpassing the expected 10.6M but lower than the previous 11.234M.

However, the lack of a significant surprise for the market and the cautious sentiments ahead of Friday's important United States jobs data contributes to the most recent inactivity of Gold.

US to Lift COVID-19 Travel Restrictions for Chinese Travelers

On Wednesday, China called for the normalization of cross-border travel, as the US is reportedly looking to ease COVID-19 testing restrictions for Chinese tourists. Additionally, the US has adopted a relaxed schedule and lifted testing requirements for tourists from China in a bid to boost trade.

Looking forward, the Producer Price Index (PPI) for February and the monthly Consumer Price Index (CPI) for China is expected to impact gold prices.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1809            1823

1802            1831

1794            1838

Pivot Point: 1816

Gold (XAU/USD) – Technical Outlook

After briefly showing bullish movement around the $1828.70 level, gold prices have since reversed and continued their downward trend, currently within the depicted bearish channel on the chart, with a target of $1788.20. Due to the prior level break, the EMA50's negative pressure on the price supports the continuation of this anticipated decline.

However, a potential stop to the bearish scenario and a likely attempt at recovery with an initial target of $1878.80 could occur if the price breaks above $1828.70 and $1843.70. The expected trading range for the day is between the support level of $1790.00 and the resistance level of $1825.00.

Daily Price Outlook

The price of gold (XAU/USD) has fallen to $1,835.46 after a three-day recovery from a two-month low due to rising Treasury bond rates. As a result, traders of the precious metal struggled to find compelling reasons to support the recent uptick.

China's PMI Signals Economic Recovery, Gold Prices Respond

Recent PMI data shows that China's manufacturing sector expanded in February, with the National Bureau of Statistics reporting that the manufacturing PMI increased to 52.6, the highest figure since April 2012. This indicates a positive economic recovery in the leading industrial country and one of the main buyers of gold. The stronger-than-expected Chinese PMIs are supporting a risk-on sentiment.

In addition, the US dollar weakened due to stronger commodity currencies, which were boosted by China's positive manufacturing activity data, giving gold buyers an advantage. However, there are concerns about the US Federal Reserve's hawkish stance and worries about further inflationary pressures that could limit the price of XAU/USD.

Fed Officials Signal Possible Interest Rate Hikes in Response to Inflationary Pressures

Federal Reserve (Fed) officials have recently stated that the current monetary policy may not be enough to control high inflation in the near future, and further rate hikes may be necessary to address the issue. In addition, the manufacturing PMI for February was released at 47.7%, slightly up by 0.3% from the January reading of 47.4%.

This marks the third consecutive month of decline for the US economy after 30 months of growth. The release resulted in a considerable sell-off of both risky and safe assets. However, the prices paid index increased by more than experts had anticipated.

The DXY is currently trading at 104.59, indicating a decline in investor risk appetite. Additionally, hawkish comments from Federal Reserve officials regarding potential rate hikes, coupled with signs of rising inflationary pressures, caused the 10-year Treasury yield to climb to 4% and the expected final rate of the Fed to increase to 5.50%.

The rise in US Treasury bond rates is a reflection of the market's worries about economic contraction and inflation. This development reinforces expectations of a US Dollar rebound and a drop in the XAU/USD price.

Gold (XAU/USD) Intraday Technical Levels

Support      Resistance

1825            1846

1813            1856

1803            1868

Pivot Point: 1835

Gold (XAU/USD) – Technical Outlook

The price of gold closed yesterday with a definite positive trend, closing above $1828.70, which is considered a signal to begin an intraday bullish wave. However, we can see that the price started the day badly, placing pressure on the stated level, which now serves as a critical support line. The price is being influenced by stochastic negativity, which is now visible.

As a result, the price is caught between technical variables that make us prefer to stay away until we have a better indication of the next trend. Breaking $1828.70 will reignite the correcting bearish scenario, pushing the price towards $1788.20 as the next key objective. Consolidating above it and exceeding $1840.00, on the other hand, will lead to additional gains and a near-term visit to $1878.80.

Today's trading range will likely be between $1815.00 support and $1850.00 resistance.