Article by: ETO Markets
Spot Gold is trading at roughly $2,330, staying within comfortable bounds. Following the release of US macroeconomic data, which left traders unsatisfied, XAU/USD saw some volatility. The economy expanded at an annual rate of 1.6% in the three months leading up to March, below the 2.5% forecast and significantly slower than the 3.4% recorded in the last quarter of 2023, according to the preliminary estimate of the nation's Q1 GDP issued.
In a risk-averse climate, gold tends to benefit versus the USD, which skews the risk to the upside. The 4-hour chart indicates that XAU/USD has a neutral to bullish position in the near future. While the RSI indicator consolidates around 50, indicating the lack of apparent directional strength, the Momentum indicator is losing its upward strength but continues to hold above 100. Simultaneously, dynamic resistance is offered by a rather bullish 100-SMA at $…, and the 20-SMA is positioned below the present level. The further resistance awaits at $...