Gold Price Forecast: XAU/USD advances gradually to near $1,920 as risk-on profile recovers

Gold price (XAU/USD) has scaled to near the critical resistance of $1,920.00 in the Asian session. The precious metal picked strength after sensing buying interest around $1,910.00 as the risk-off impulse is losing its grip.

S&P500 futures are aiming to recover their entire losses witnessed on Monday, portraying that investors are shrugging-off any sort of pessimism in an overall bullish market. The 10-year US Treasury yields have eased some gains and have dropped to 3.51%. Going forward, a volatile action is expected from the US Dollar Index (DXY) as the United States markets are opening after a stretched weekend.

Gold price is expected to display a power-pack action after the release of the US Producer Price Index (PPI) data, which will release on Wednesday. Investors should brace for a deceleration in the prices of goods and services at factory gates to match the decline in retail demand. A decline in the PPI figures is going to delight the Federal Reserve (Fed), which is making sheer efforts in achieving price stability in the US economy.

Apart from the US PPI, the release of the monthly Retail Sales data will be of utmost importance. As per the projections, the retail demand (Dec) will escalate by 0.1% vs. -0.6% reported earlier.

Gold technical analysis

Gold price has corrected after printing a fresh eight-month high at $1,929.00 on an hourly scale. The precious metal has turned sideways in a narrow range of $1,911-1,919 as investors await US PPI data. The 20-period Exponential Moving Average (EMA) at $1,915.54 is overlapping with the asset prices, which indicates a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates that the asset is rangebound.

Gold hourly chart