Article by: ETO Markets

Gold prices (XAU/USD) edged lower during the Asian session on Thursday, remaining within a familiar range as mixed fundamental cues shaped market sentiment. Hawkish comments from Federal Reserve officials, including Chair Jerome Powell, signalled caution on rate cuts, boosting US Treasury yields slightly and pressuring the non-yielding metal. A risk-on market environment also weighed on gold, though geopolitical tensions, such as the Russia-Ukraine conflict, and concerns over US President-elect Donald Trump's tariff policies provided some support. Additionally, the US Dollar struggled to gain traction, limiting gold's losses. Traders are awaiting the US Nonfarm Payrolls report on Friday for clearer directional cues amid ongoing debates about the Fed's monetary policy path. 

From a technical perspective, the breakdown below a multi-day ascending channel has triggered an immediate resistance level of 61.8% Fibonacci level at $…. The further resistance is seen at $… supported by 55-day Simple Moving Average. A break above $… could face the resistance at $…, which, if cleared, might favour bulls and signal further appreciation. On the downside, neutral oscillators suggest caution, with confirmation needed from sustained selling below the $… support area to target further declines. Such a move could push prices below the weekly swing low of $…, potentially testing the $… mark and the 100-day SMA at $….