The other major numbers Gold prices are still in the spotlight in financial markets. The XAU/USD pair holds above the key $3,000 level. Key changes in important technical indicators and major economic events around the world have all played a role in how gold prices have moved recently. The 20 Simple Moving Average (SMA) now offers dynamic support at around $2,954.70, as it continues building upward momentum. Looking at the 4-hour chart, it appears that the upside potential for XAU/USD is capped. The 100 and 200 SMAs will keep a bullish posture for the XAU/USD pair, with both standing clear above it.
In other economic news, the revival of the Black Sea Grain deal is biggest economic breakthrough. It enables Ukraine to ship its agricultural products and grain to the rest of the world. Such a move is likely to have a major destabilizing effect on commodity prices, which in turn would affect market sentiment.
The CB index missed badly, landing at 92.9, when analysts were expecting a reading of 94.2. Indeed, this figure represents a record plummet from the last reading of 100.1. This drop in consumer confidence data for the US is linked to uncertainties related to former President Donald Trump. Such uncertainties have shaped forecasts and perceptions of the economy and resonated through the markets through increased volatility.
All eyes on Core PCE
Going forward, we’ll be looking at Core Personal Consumption Expenditures (PCE). This is the Federal Reserve’s preferred inflation measure, and we should get it later this week. This information will be key to informing public expectations regarding future monetary policy and Fed management of inflation.
No clear trends can be identified in performances in the foreign exchange market. On Tuesday’s American session, the EUR/USD is gaining traction and trading firmly above the 1.0800 area. GBP/USD is heading even higher after modest gains on Monday. This afternoon, Tuesday, it’s trading closer to 1.2950. The New Home Sales numbers out of the US have US dollar under pressure. Consequently, these currency crosses have been able to cling on to their gains.
In a major step for the developing crypto industry, World Liberty Financial (WLFI) made headlines Tuesday with its announcement to issue a USD1 stablecoin. This new effort is modeled after President Donald Trump’s This announcement—in conjunction with the recent surge in expenses and short-seller interest—shines light on the complexity in market dynamics as digital currencies draw more investors’ focus.
XAU/USD continues to find support above the $3,000 mark. As technical indicators and macroeconomic events continue to collide head-on, their combined impact defined investor decisions and market movements last week.