Gold Price Forecast: Bull’s eye $1,800 as US T-bond yields plummet as central banks cut stimulus

  • The Bank of Canada adds to the RBNZ as the only central banks that finished its pandemic QE.
  • US T-bond yields plunged once the BoC decision hit the wires.
  • Gold aims higher, as nervousness grows on investors, of what the Federal Reserve might do next.

Gold (XAU/USD) climbs during the New York session, is up 0.20%, trading at $1,796.47 a troy ounce at the time of writing. The non-yielding metal recovered some of its brightness as the session progressed, boosted by safe-haven flows.

Risk-off market sentiment spurred my month-end flows and US fiscal policy concerns, kept investors at bay. Furthermore, the economic growth outlook and central bank tightening monetary policy conditions seem to weigh on lately, hurting the greenback thus favoring gold.

In the meantime, the US T-bond yields plummet in the session, with the 10-year note breaking decisively below the 1.60% threshold, sitting at 1.535% down eight basis points, weighing on the greenback, as noted by the US Dollar Index falling 0.16%, at 93.79.

It is worth noting that on Wednesday, the Bank of Canada ended its weekly bond-purchasing program, that in turn, weighed on investors as yields plunged severely in the session.

That said, expectations around gold lie heavily on the Federal Reserve November meeting. A $15 Billion bond taper is priced in. However, If the Federal Reserve aims for a quicker than expected bond-tapering, that might send gold tumbling below the $1,720 threshold and potentially towards a renewed test of 2021 lows.

XAU/USD Price Forecast: Technical outlook

Daily chart

Gold (XAU/USD) spot price is above the confluence of the 100 and 200-day moving average (DMA) and on Tuesday broke a downward slope trendline previously resistance-turned-support, which could be viewed as a bullish signal. The Relative Strength Index (RSI) is at 58, aims slightly low, but as it remains above the 50-midline, it is bullish for the yellow metal.

To resume the upward trend, gold buyers will need a daily close above $1,800. In that outcome, the September 3 high at $1,834 would be the first resistance level. A clear break above the latter would expose the June 4 low at $1,855, followed by the $1,900 threshold.



Today last price 1797.84
Today Daily Change 5.02
Today Daily Change % 0.28
Today daily open 1792.82
Daily SMA20 1770.62
Daily SMA50 1780.4
Daily SMA100 1790.16
Daily SMA200 1793.36
Previous Daily High 1808.36
Previous Daily Low 1782.43
Previous Weekly High 1813.82
Previous Weekly Low 1760.37
Previous Monthly High 1834.02
Previous Monthly Low 1721.71
Daily Fibonacci 38.2% 1792.34
Daily Fibonacci 61.8% 1798.45
Daily Pivot Point S1 1780.71
Daily Pivot Point S2 1768.61
Daily Pivot Point S3 1754.78
Daily Pivot Point R1 1806.64
Daily Pivot Point R2 1820.47
Daily Pivot Point R3 1832.57



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays pressured as shares slump on Powell's hawkish rhetoric

EUR/USD bears stay in control as Asian shares take a plunge. The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies. The US dollar is bid in Asia and risk aversion remains in play.


GBP/USD: 200-SMA, monthly support test bears post-Fed

GBP/USD battles key supports as sellers poke 1.3460 during early Thursday. The cable pair broke the 200-SMA following the US Federal Reserve’s (Fed) hawkish verdicts. However, clear trading beneath the same becomes necessary to convince the bears.


Gold sticks to weekly lows near $1,815 amid firmer yields

Gold price is meandering near one-week lows of $1,813, as the demand for the US dollar remains unabated amid rising two-year Treasury yields. The two-year US rates spike to fresh 23-month highs of 1.192% as the Fed funds futures tumble on expectations of five rate hikes this year.

Gold News

Binance Coin price needs to reclaim $414 to avoid further losses

Binance Coin price must reclaim $414 as support in order for the bulls to target higher levels. BNB may be confronted with a stiff hurdle at the 50% retracement level at $504. However, if Binance Coin fails to slice above $414, the exchange token may drop lower toward the 200 three-day SMA.

Read more

Federal Reserve rate cycle to begin in March, markets reverse on warning Premium

The Federal Reserve kept its rate policy on schedule, indicating in its statement and Chair Jerome Powell’s press conference that it will raise the fed funds rate at the March meeting for the first time in three years. 

Read more