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

Gold price is marching towards $1,920.00 as the risk-off impulse is fading away.
A volatile action is expected from the US Dollar Index as the US markets are opening after a stretched weekend.
A decline in the PPI figures is going to delight the Fed which is aiming to achieve price stability.

Sagar Dua FXStreet

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

XAU/USD

Overview
Today last price	1917.71
Today Daily Change	3.28
Today Daily Change %	0.17
Today daily open	1914.43

Trends
Daily SMA20	1842.58
Daily SMA50	1797.84
Daily SMA100	1735.86
Daily SMA200	1776.96

Levels
Previous Daily High	1929.02
Previous Daily Low	1910.91
Previous Weekly High	1921.96
Previous Weekly Low	1865.22
Previous Monthly High	1833.38
Previous Monthly Low	1765.89
Daily Fibonacci 38.2%	1917.83
Daily Fibonacci 61.8%	1922.1
Daily Pivot Point S1	1907.22
Daily Pivot Point S2	1900.01
Daily Pivot Point S3	1889.11
Daily Pivot Point R1	1925.33
Daily Pivot Point R2	1936.23
Daily Pivot Point R3	1943.44

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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