The Gold price was consolidating above $2,300 for several days after returning from $2,400, but yesterday XAU resumed the decline, falling below $2,300. Geopolitical tensions are calming somewhat which is helping to improve risk sentiment in financial markets, turning safe havens such as Gold, Silver and the Swiss Franc bearish.

Gold Chart Daily – The 20 SMA Turned Into Resistance

GOLD has been consolidating over the past week after rebounding above $2,400 early last week, following months of robust demand. Buyers have maintained prices within a range, with gold prices fluctuating between $2,310 and $2,350, forming a solid trading range. However, today, XAU broke below this range and dropped below $2,300.

On the daily chart, Gold’s price remained below the 20-day Simple Moving Average (MA), which was acting as resistance at the top (depicted in grey). This signaled a more neutral near-term bias, with traders adhering to these technical parameters following the previous significant surge. However, today marked a break in this pattern as Gold closed below $2,300 for the first time since early April.

US April Consumer Confidence Data from The Conference Board

• Present situation index: 142.9 points, down from the previous reading of 151.0 points (revised to 146.8).
• Expectations index: 66.4 points, compared to the prior reading of 73.8 points (revised to 74.0).
• Jobs hard-to-get: 14.9, higher than the previous reading of 10.9.
• 15.4% of consumers expect their incomes to increase, down from 17.3% last month.

Gold Live Chart