Gold Price Forecast: Gold picks up momentum on dollar’s weakness

Valeria Bednarik FXStreet

XAU/USD Current price: $1,815.50

US Federal Reserve chief Powell is confident in economic progress, cautious with tapering.
Wall Street is in recovery mode, lead by a bounce in the tech sector.
XAU/USD is poised to extend gains once above $1,820.15, the immediate resistance level.

Spot gold trades around $1,816 a troy ounce, it's highest for this week. The greenback came under selling pressure following comments from US Federal Reserve chief Jerome Powell. In the hearings before the Senate amid his nomination for a second term, the leader of the US central bank mixed a hawkish view of the economy with a cautious approach to the reduction of the balance sheet.

After the FOMC Minutes from the December meeting sent investors into pricing in firmer tightening, his words today were seen as more dovish, as Powell said the balance sheet runoff could happen "perhaps later in the year." At the same time, he repeated that asset purchases will end in March and that inflationary pressures will likely extend well into this year, with the monetary policy adapting to needs.

The news helped stocks bounce, with Wall Street trading in the green at the time being, also helped by speculative interest buying tech shares after the latest sell-off in the sector. US government bond yields ticked lower, another sign of easing concerns that plays against the greenback.

Gold price short-term technical outlook

The daily chart for XAU/USD hints at a bullish extension, as the bright metal finally accelerated above its moving averages, with the 20 SMA about to cross above the 200 SMA. Technical indicators head firmly higher within positive levels, although still below their December highs. Nevertheless, there is room for additional gains should the metal overcome 1,820.15, the immediate resistance level.

In the near term and according to the 4-hour chart, gold is firmly bullish, bouncing from around its 100 SMA and currently above all of its moving averages, as technical indicators approach overbought readings.

Support levels: 1.809.50 1,798.30 1,782.60,

Resistance levels: 1,820.15 1,829.60 1,842.85

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 jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold comes under pressure, still above $4,000 ahead of FOMC

Gold now gives away part of its recent two-day rebound, although a breach below the key $4,000 mark per troy ounce remains elusive for now. Rising crude oil prices keep the precious metal under pressure ahead of the Fed’s interest rate decision later on Wednesday.

Zcash's bullish momentum mounts on steady ETF inflows, retail confidence

Zcash extends steady recovery above $1,300 on Wednesday, approaching a key resistance near $1,373. Grayscale’s ZEC-focused Exchange-Traded Fund sees persistent buying pressure, with six straight days of inflows, including more than $3 million on Tuesday.

Federal Reserve set to hold interest rates steady despite persistent inflation

The US Fed announces its Interest Rate Decision on Wednesday, following another pivotal meeting that could provide key insights into the bank’s monetary policy outlook heading into the end of the year.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.