Gold Price Forecast: XAU/USD struggles to extend above $1,820 decisively ahead of US ISM data
|- Gold price is facing pressure to surpass the immediate hurdle of $1,823.00.
- Less trading activity is expected amid the global market's festive mood.
- Going forward, investors will keep an eye on US ISM Manufacturing PMI data.
Gold price (XAU/USD) struggles to extend its upside above the immediate resistance of $1,823.00. The precious metal is expected to remain lackluster amid the festive mood for New Year celebrations. Therefore, trading activity will remain quiet in various nations.
The US Dollar Index (DXY) settled the last trading session on a weak note after delivering a south-side break of the consolidation formed in a 103.47-104.57 range. The USD Index dropped to near the round-level support of 103.00. Meanwhile, S&P500 witnessed some sell-off on Friday as investors turned cautious about the CY2023 outlook, portraying ambiguity in the risk impulse.
Going forward, investors will focus on the United States ISM Manufacturing PMI data (Dec), which will release on Wednesday. Per the consensus, the ISM Manufacturing data will escalate to 49.6 vs. the former release of 49.0. Apart from that, investors will keep New Orders Index on the radar, which might climb to 48.1 against the prior release of 47.2. A decent improvement in demand anticipants may also support the US Dollar Index.
Gold technical analysis
Gold price is auctioning in an Ascending Triangle chart pattern on a four-hour scale. The horizontal resistance of the aforementioned chart pattern is placed from December 13 high at $1,824.55, while the upward-sloping trendline is plotted from December 16 low at $1,774.36.
Advancing 20-and 50-period Exponential Moving Averages (EMAs) at $1,814.77 and $1,807.43 add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 from the 40.00-60.00 range, which indicates more upside ahead.
Gold four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.