Xau/USD Current price: $3,348.48
- Sentiment improved as Trump announced another set of trade discussions with China.
- The European Central Bank’s hawkish rate cut boosted optimism.
- Xau/USD remains over $50 away from its previous peak, but bulls are still in control.
Spot Gold has slipped from its recent high of $3,403.55 and is trading near daily lows around $3,340 as of this writing. The XAU/USD pair saw a decrease during the Central European session after the European Central Bank (ECB) made its monetary policy announcement. The bank cut interest rates, as expected, but the likelihood of further cuts diminished sharply once President Christine Lagarde suggested that a financial policy cycle was nearing completion and expressed a more optimistic outlook for the economy.
There’s a sense of optimism stemming from U.S. President Donald Trump, who referred to his talks with Chinese President Xi Jinping as a “very good call.” Trump also mentioned that the U.S. has substantial connections with Germany during discussions with Prime Minister Friedrich Merz.
Market participants appear quite hopeful ahead of the U.S. non-farm payroll report set to be released on Friday. Predictions indicate an addition of 130,000 new jobs in May, while the unemployment rate is expected to hold steady at 4.2%.
Xau/USD Short-Term Technical Outlook
Looking at the daily chart for the XAU/USD pair, it shows that while there’s some pressure at the lower edge of the latest range, it still remains within a familiar area. The technical picture hasn’t shifted much since previous updates, which adds a bit of risk. On one hand, technical indicators are above the midline but lack a clear direction. At the same time, the pair continues to approach moving averages, with the simple moving average (SMA) of the flat 20 providing support around $3,295.40. Longer-term averages are pushing upwards, contrasting with the shorter ones.
The 4-hour chart indicates that XAU/USD is currently trading below the flat 20 SMA. While the technical indicators are tilting downward, they remain at neutral levels, insufficient to predict a steep decline ahead.
Support levels: 3,339.50, 3,325.60, 3,316.90
Resistance levels: 3,367.10, 3,382.60, 3,394.05
