Gold Price Forecast: XAU/USD advances at over one-month high

XAU/USD Current price: $3,415.20

• The US Dollar is pressured across the board despite upbeat US data.
• The US Personal Consumption Expenditures Price Index is due on Friday.
• XAU/USD pressures fresh one-month highs, aiming to extend its rally.

Gold extends its recent rally beyond the $3,400 mark on Thursday, trading at around $3,410 in the American session. The US Dollar (USD) edged lower despite upbeat United States (US) data, as the country upwardly revised its Q2 Gross Domestic Product (GDP) from a preliminary estimate of 3.1% to 3.3%.

Dovish comments from Federal Reserve (Fed) Bank of New York President John Williams put pressure on the Greenback at the beginning of the day. Williams said that growth and the fact that the economy is going through an adjustment phase are paving the way for interest rate cuts, although clarifying that policymakers need to see more economic data before reaching a conclusion.

Meanwhile, US indexes trade with modest gains, reversing early losses. Still, demand for the bright metal remains steady heading into the last trading day of the week. Market players await the release of the United States (US) Personal Consumption Expenditures (PCE) Price Index on Friday. The Fed’s preferred inflation measure is expected to show that annualized inflation stood at 2.6% in July, while the core annual reading is forecast to tick marginally higher, to 2.9% from the previous 2.8%.

XAU/USD short-term technical outlook

The daily chart for the XAU/USD pair shows it stands at its highest in over a month, and is pressuring intraday highs. The pair is also advancing for a third consecutive day above mildly bullish 20 and 100 Simple Moving Averages (SMAs). The Momentum indicator remains flat at around its 100 line, but the Relative Strength Index (RSI) indicator picked up pace and heads north at around 61.

The 4-hour chart shows that XAU/USD maintains its upward momentum, as the pair develops above all its moving averages. The 20 SMA accelerates higher above the longer ones, which remain flat. Finally, technical indicators head firmly higher, with the RSI indicator approaching overbought readings but without signs of upward exhaustion, maintaining the risk skewed to the upside.

Support levels: 3,397.90 3,380.45 3,368.20

Resistance levels: 3,421.10 3,433.90 3,450.60