Gold Price Forecast: Entering year 2022 with firm bullish potential

Valeria Bednarik FXStreet

XAU/USD Current price: $1,813.58

Stocks are set to close the year near record highs, as US indexes continue to advance.
Position adjustment continues as investors prepare to close their books.
XAU/USD gains bullish traction with an immediate resistance at 1,820.25.

Spot gold is little changed on a daily basis, marginally higher around the 1,813 level. The dollar keeps seesawing between gains and losses without a certain catalyst as investors close their books for 2021. Most financial markets will be closed due to the New Year’s Eve celebration starting in Asia, although US stocks markets will be open while bond markets are due to an early close. Still, no macroeconomic data will be published, and it seems unlikely markets will see some action.

Meanwhile, European indexes closed with modest gains, while Wall Street is also up at the time being. Government bond yields consolidate Thursday gains, with the yield on the 10-year Treasury note currently around 1.53%.

Gold price short-term technical outlook

XAU/USD trimmed the past two-day losses, holding near its recent monthly high of 1,820.25. The daily chart hints at a bullish continuation, as buyers defended the downside around a mildly bullish 200 SMA. The 20 and 100 SMA converge below the longer one, also heading modestly higher. Technical indicators, in the meantime, picked up within positive levels, reflecting an increasing buying interest.

In the near term, and according to the 4-hour chart, gold is neutral-to-bullish. The bright metal has accelerated north after surpassing a directionless 20 SMA, while the Momentum indicator remains directionless within neutral levels. The RSI indicator, on the other hand, heads firmly higher at around 60, also hinting at resurgent buying interest.

Support levels: 1,,803.00 1,789.30 1,778.20 1

Resistance levels: 1,820.25 1,831.10 1,842.00

View Live Chart for the XAU/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold consolidates near $4,000 as recovery remains fragile ahead of Fed decision

Gold (XAU/USD) consolidates modest gains on Monday after last week’s sharp decline pushed the metal to $3,975, its lowest level since August. A pullback in Oil prices offers support as traders react to diplomatic efforts to ease tensions in the Middle East.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

Flight to safety meets a high earnings bar as central bank week begins

Treasuries rallied again, equities are struggling, and central banks and earnings are on the horizon. Last week, US Treasuries rallied for a second consecutive week. This pushed 10s and 30s to 5% and 5.33%, respectively, flattening the curve even as Brent crude rallied about 7% to within striking distance of March peaks at US$119.50, and tech stocks posted a second straight week of losses.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.