Gold Price Forecast: XAU/USD extends record run beyond $3,730

XAU/USD Current price: $3,736.92

• Financial markets keep digesting the latest Fed decision and dropping the US Dollar as a result.
• American data spread throughout the week should confirm or deny speculative interest perspectives.
• XAU/USD is again overbought, but there are no technical signs of upward exhaustion.

Spot Gold keeps rallying to record levels, reaching $3,73 a troy ounce on Monday and holding nearby in the American session. Despite a generalized optimism, demand for the bright metal continues amid broad US Dollar (USD) weakness.

Financial markets are still digesting the latest United States (US) Federal Reserve (Fed) monetary policy announcement. The US central bank lowered the benchmark rate as expected in the September meeting, and hinted at additional cuts in November and December. American data scheduled for this week will help speculative interest confirm or deny their beliefs on the matter.

S&P Global will publish the preliminary estimates of the September Purchasing Managers’ Indexes (PMIs) on Tuesday, anticipated to show business activity expanded at a healthy pace. The final Q2 Gross Domestic Product (GDP) estimate will be out on Thursday, while on Friday, the country will release updated Personal Consumption Expenditures (PCE) Price Index figures, the Fed’s favorite inflation gauge.

XAU/USD short-term technical outlook

The XAU/USD pair is firmly up for a second consecutive day, and technical readings in the daily chart suggest further advances are still in the docket. The Relative Strength Index (RSI) indicator bounced from its 70 line, and maintains a strong upward slope within overbought readings. At the same time, the Momentum indicator consolidates well above its 100 line, lacking directional strength. Finally, the pair runs beyond bullish moving averages, with the closest being the 20 Simple Moving Average (SMA) at around $3,581.

The 4-hour chart for XAU/USD shows technical indicators are partially losing their bullish slopes after reaching overbought readings, still holding within extremes and without signs of changing course. At the same time, the bright metal runs beyond all its moving averages, with a mildly bullish 20 Simple Moving Average (SMA) hovers around $3,674.00, while the 100 and 200 SMAs accelerated north well below the shorter one.

Support levels: 3,724.10 3,707.80 3,691.50

Resistance levels: 3,750.00 3,765.00 3,780.00