Gold Price Forecast: XAU/USD sees upside above $1830 ahead of downbeat US Durable Goods Orders
|- Gold price is expected to display an upside movement above $1,830.00.
- A downbeat performance looks likely from the US Durable Goods Orders.
- The gold prices are expected to display a lackluster performance on symmetrical triangle formation.
Gold price (XAU/USD) has displayed topsy-turvy moves in a range of $1,821.88-1,831.87 on Friday. The precious metal is expected to witness a decisive move as investors await US Durable Goods Orders data. As per the market consensus, the data is expected to slip to 0.1% from the prior print of 0.5%.
A decent slippage in the economic data is expected to underpin the gold prices going forward. The economic data carries a proper relation with the aggregate demand in the US economy. A higher Durable Goods Orders dictate that the household's demand is resilient. The lower estimates for the economic data could be the outcome of soaring inflation, which is hurting the paychecks of the households and henceforth the demand for the Durable Goods.
It is worth noting that the US economy reported the downbeat Purchase Managers Index (PMI) data. The Manufacturing and Services PMI, both aspects displayed a vulnerable performance. So, the downbeat estimates for the Durable Goods Orders after a vulnerable PMI may hurt the US dollar index (DXY) significantly. The DXY remained lackluster last week and is expected to perform weak on the continuous downbeat performance from the economic data.
Gold technical analysis
On an hourly scale, the gold prices are trading in a symmetrical triangle that signals a slippage in the volatility. The upward sloping trendline is placed from June 14 low at $1,805.11 while the downward sloping trendline is plotted from June 16 high at $1,857.88. The greenback bulls are defending the 50-period Exponential Moving Average (EMA) at $1,828.75. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00, which bolsters a rangebound move ahead.
Gold hourly chart
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