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A bout of risk-taking sent the safe-haven gold lower last week.

Spot gold (XAU/USD) hit highs near $1,960 when monetary policy decisions by the Fed, BOE, and ECB hit the markets. Basically, while central bank members are still watching inflation, they’re also willing to adjust their policies if needed.

The prospect of less hawkish biases encouraged risk-taking and gold-dumping.

Spot Gold (XAU/USD): 1-hour

Spot Gold (XAU/USD) 1-Hour Chart

Spot Gold (XAU/USD) 1-Hour Chart by TradingView

XAU/USD plummeted all the way to $1,860 before gold buyers said “aight, that’s enough.”

The pair is now consolidating in a lowkey ascending channel while hanging out at a trend line support that’s been valid since mid-November.

Oh, and have you seen that XAU/USD’s current levels also line up with the 50% Fibonacci retracement of 2023’s upswing?

If markets focus on global growth concerns then XAU can extend its uptrend against fellow safe-haven USD.

XAU/USD could bounce from its trend line support and retest previous areas of interest like $1,900 or $1,920.

Don’t bet the farm on trend continuation though!

Actually, don’t bet the farm on anything.

But XAU/USD, in particular, could still break its months-long uptrend.

In fact, the 1-hour moving averages are supporting further bearish moves.

Check out the 100 SMA firmly pointing lower and widening its gap against the longer-term 200 SMA!

If Fed members continue to talk about interest rate hikes or a more prolonged period of high interest rates, then USD will regain its attraction advantage against the non-yielding gold.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.