Gold Price Forecast: Unbeatable dollar set to keep appreciating

Valeria Bednarik FXStreet

XAUUSD Current price: $1,862.83

Speculative interest is focused on inflation and its potential effects on economic growth.
Government bond yields soared to multi-year highs but eased after Wall Street open.
XAUUSD has room to test the $1,800 figure, particularly on a break below $1,850.35.

Gold Price is down at the beginning of the week as risk aversion maintained the greenback on the winning path. The American currency appreciated ever since the day started amid a dismal market mood. Speculative interest is focused on inflation and its potential negative effects on economic growth, as the US will release April Consumer Price Index figures later in the week. Demand for the dollar receded mid-US afternoon, although the bright metal was unable to take advantage of it.

Much of the market’s direction was determined by government bond yields, which jumped to multi-year highs on Monday. The yield on the US 10-year Treasury note hit 3.203%, now down to 3.09%, while that on the German 10-year bund hit 1.189%, currently at around 1.10%.

Gold Prices short-term technical outlook

From a technical point of view, XAUUSD is at risk of falling further. The daily chart shows that a mildly bullish 100 SMA continues to provide dynamic resistance, while the 20 SMA heads firmly lower far above it. Technical indicators, in the meantime, keep consolidating near oversold readings without signs of a potential recovery. The bearish case will likely persist as long as the price holds below $1,885.10, the 23.6% retracement of the April/May slump.

The 4-hour chart shows that the pair is developing below all of its moving averages, as technical indicators hold within negative levels without clear directional strength. Gold bottomed early in May at $1,850.34 a troy ounce, the level to break to confirm another leg south towards the $1,800 figure.

Support levels: 1,850.35 1,838.10 1,825.40

Resistance levels: 1,873.00 1,885.10 1,896.00

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 keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.