Gold Price Forecast: Holding ground around $1,750 as Powell looms
XAU/USD Current price: $1,752.82
- Investors await US Federal Reserve Chair Jerome Powell's words to move more aggressively.
- Mixed US data showed better-than-anticipated growth but tepid employment performance.
- XAU/USD holds on to modest intraday gains after hitting a fresh weekly high.
Spot gold rose early on Wednesday, hitting an intraday high of $1,764.74 as market players await US Federal Reserve Chair Jerome Powell's speech and assess mixed US data. The country published the ADP survey on employment, which came in worse than anticipated as the private sector added just 127K new job positions, although the Q3 Gross Domestic Product growth was upwardly revised to 2.9%, beating expectations of a 2.6% increase in the three months to September.
However, XAU/USD turned south after Wall Street’s opening, as risk-off flows dominate the scene. US Treasury yields advanced, with that on the 10-year note peaking at 3.798%, now down to 3.77% but still up on the day. At the same time, US indexes navigate the red, although slowly moving away from their early lows.
XAU/USD price short-term technical outlook
The XAU/USD pair currently trades at around $1,753, little changed for a sixth consecutive day. The daily chart shows that the Momentum indicator is pressuring its 100 level to the downside, reflecting the lack of upward strength. At the same time, the RSI indicator consolidates at around 59, maintaining the risk skewed to the upside. Furthermore, the 20 SMA heads north below the current level, providing dynamic support at around $1,737.40.
The near-term picture reflects the ongoing slide but falls short of supporting a downward extension. The pair is trading above the 23.6% retracement of its latest daily advance at $1,745.50, while a bullish 100 SMA converges with the mentioned Fibonacci level. The 20 SMA is flat, with the price seesawing around it, while technical indicators turned lower but remain within neutral levels. A clear break below the aforementioned static support level could open the door for a stepper decline towards the $1,725 price zone.
Support levels: 1,745.50 1,737.40 1,725.65
Resistance levels: 1,758.60 1,771.10 1,783.90
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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.
