XAU/USD Inches Closer to $1,982 Amid Earnings Reports and Econom

In Wednesday's trading, XAU/USD made gains, reaching approximately $1,982 per troy ounce. As financial markets closely observe Wall Street's earnings reports, the focus is on the economic outlook leading up to pivotal events on Thursday. Anticipations of robust U.S. economic growth, potentially at an annualized rate of 4.2% for the third quarter, are raising questions about interest rates and the Federal Reserve's stance. Simultaneously, the European Central Bank (ECB) is expected to maintain rates and adopt a cautious approach to future monetary policy. Earnings season is further impacting sentiment, with mixed results from major tech companies affecting stock indices, and rising government bond yields adding to market dynamics.

According to technical analysis, XAU/USD is consolidating on Tuesday and has the potential to reach the upper band of the Bollinger Bands, which is currently squeezing. Presently, the price of gold is consolidating near the upper band, implying a possible downward consolidation. The Relative Strength Index (RSI) is currently at 60, indicating a neutral bias for the XAU/USD pair.

Resistance: $1,985, $2,002
Support: $1,970, $1,959