Rollercoaster Ride, As Gold Price Returns Down After Surging to $2,200

The Gold price experienced a notable surge of $30 to reach $2,200 during the European session. However, it quickly retraced back to $2,170

Written by: Skerdian Meta • Tuesday, March 26, 2024 • 2 min read

• Last updated: Tuesday, March 26, 2024

The Gold price experienced a notable surge of $30 to reach $2,200 during the European session. However, it quickly retraced back to $2,170 thereafter. This price action suggests a period of consolidation, with the XAU/USD pair trading within a tight range in the past few hours. On the hourly chart (H1), the 200-period Simple Moving Average (SMA) in purple is acting as a support level at the bottom, providing some stability to the price. Meanwhile, a resistance zone seems to have formed around the $2,200 level, capping the upward momentum for now.

Gold Chart H1 – The 200 SMA Held After the Reversal

Gold (XAU/USD) retreated to $2,170 during the US session today as investors prepared for key US inflation indicators and Federal Reserve insights. The strengthening dollar, which reached a one-month high of 93.50 on the Dollar Index, added further pressure on the price of gold. The anticipation of important economic data and insights from the Federal Reserve likely prompted investors to adjust their positions, leading to a decline in demand for gold.

The US retail sales for February came above expectations today, which might have helped in the bearish reversal in Gold. However, the Philadelphia Fed Non-Manufacturing Business Index for March 2024 was weaker and came in at -18.3 points, significantly lower than the previous month’s reading of -8.8 points. Here are the key components of the report:

Philadelphia Fed Nonmanufacturing Index for March 2024

Philadelphia Fed non-manufacturing business index for March -18.3 points versus -8.8 points last month
February Philly FED non-manufacturing index was -8.8 points
New Orders: Improved slightly to -3.4 points from the previous reading of -4.7 points.
Prices Paid: Declined to 26.6 points from 30.3 points in the prior period.
Employees: Decreased to +3.5 points from the previous reading of +9.1 points.

A special question in the Philly Fed survey shows 22.4% of firms expecting a 10% or more decline in revenue in Q1 vs Q4 2023.

Gold Live Chart

GOLD

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.