- The price of gold drew offers near $1,850.00 on broader DXY weakness.
- The lackluster GDP numbers and flat PCE number dented demand for the DXY.
- In today’s session, US Core PCE and Michigan CSI are in focus.
The price of gold (XAU/USD) saw a slight pullback towards $1,850.00 in its first hours of trading, but rebounded strongly. The precious metal is showing an equilibrium bid in the range of $1,840.76-$1,856.35 as of Wednesday amid the unavailability of any potential triggers that could give direction to the asset. Additionally, Thursday’s release of US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) figures provided no significant movement in the meter.
Annualized US GDP landed at -1.5%, below estimates of -1.3% and the previous print of -1.4%. An underperformance on the GDP front did not provide support for the asset. Other than that, the precious metal failed to respond to unchanged PCE numbers.
On the dollar side, the US Dollar Index (DXY) is trading below 102.00. The DXY is likely to extend its losses after slipping below Tuesday’s low at 101.65. A firmer rebound in positive market sentiment brought significant offers to the counter.
On Friday, investors will keep the core Personal Consumption Expenditure (PCE) price index on their radar, which could fall to 4.9% from 5.2% previously. Other than that, the Michigan Consumer Confidence Index (CSI) will remain the focus, which remains unchanged at 59.1.
Gold technical analysis
On an hourly timescale, gold prices are trading in a consolidation range of $1,840.76-$1,856.35 near the rising trendline placed from the May 16 low at 1786, $94, adjoining the May 19 low at $1,811.01. The 20-period and 50-period exponential moving averages (EMAs) gave a bearish crossover at $1,856.23, which adds to the downside filters. Meanwhile, the Relative Strength Index (RSI) (14) is hovering in a no-trade zone.