Gold Prices Show Modest Recovery with Hawkish Fed Remarks

Gold price (XAU/USD) experienced a modest recovery on Thursday, ending a three-day losing streak that had brought it to its lowest level since October 18, around $1,944. However, the recovery lacked follow-through buying, and during the European session, the precious metal slid back to the $1,955 area. This week, several influential members of the Federal Open Market Committee (FOMC) took a more hawkish stance while Fed Chair Jerome Powell mentioned on Thursday that policymakers are encouraged by the slowing pace of inflation but uncertain if the current policy is restrictive enough to maintain momentum. This has allowed the yield on the 10-year US government bond to rise from a one-month low, supporting the USD and putting pressure on the non-yielding gold. The easing concerns over the Israel-Hamas conflict have also contributed to the decline in demand for gold, although worries about China's worsening economic conditions may help limit the downside. Traders are now focusing on the release of the Michigan US Consumer Sentiment Index, which could impact the dynamics of the USD price. Overall, the broader risk sentiment and these upcoming factors should provide short-term trading opportunities in the gold market.

Gold faced rejection at the 1950 level, which serves as a significant confluence point for solid support and resistance. There is potential for a continuation upward in the market.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2040	2020	2006	1963	1947	1920