- The US reported a 3.3% annualized GDP for the three months ending in December, surpassing the market forecast of 2.0%, impacting expectations for an early-year Fed rate cut.
- The XAU/USD charts reveal a bearish trend with the 20 Simple Moving Average (SMA) indicating downside risk, and technical indicators supporting the potential for a decline below the $2,010 price zone in the short term.
The United States revealed a 3.3% annualized GDP for the three months ending in December earlier today, surpassing the market’s 2.0% forecast.
The likelihood of an early-year Fed rate cut seems to have diminished even further now, helping curb weakness in the dollar. Given these market conditions, does a rally in gold appear improbable in the short to medium term?
Examining the XAU/USD daily chart, the risk might remain tilted towards the downside. The bearish 20 SMA maintains its negative slope above the current price, while the longer moving averages are significantly below the present level.
On the 8-hour chart, gold encountered intraday pressure around the 20 SMA. Concurrently, technical indicators are on a downward trajectory within negative levels, suggesting a potential decline to $2,010, or even lower lows around $2,001.
