Gold Price Forecast: XAU/USD advances towards $1,750 amid subdued DXY ahead of US ISM PMI
- Gold price is marching towards $1,750.00 as DXY is performing subdued after a bumper rally.
- An expected decline in the US ISM PMI has limited DXY’s gains.
- The odds of a bullish reversal have strengthened as the gold prices have formed a balanced profile on a higher side.
Gold price (XAU/USD) has picked bids below $1,735.00 and is expected to advance firmly. The precious metal is oscillating in a tad wider range of $1,734.00-1,741.00 after a firmer rebound from Monday’s low at $1,720.40. Investors are underpinning the yellow metal against the greenback as the US Institute of Supply Management (ISM) is expected to display a subdued performance, which is due on Thursday.
As per the consensus, the US ISM Manufacturing PMI is expected to land at 52, lower than the prior release of 52.8. There is no denying the fact that the street is worried over shrinking economic activities led by the unavailability of cheap money for disposal. Therefore, a decline in manufacturing PMI forecasts is impacting investors’ sentiment.
Apart from that, investors will also focus on New Orders Index data, which is expected to improve to 48.5 vs. 48 reported earlier. The New Orders Index data indicates forward demand for goods and an improvement in economic data may support the DXY. While, the show-stopper event for his week will be US Nonfarm Payrolls (NFP), which will release on Friday.
Gold technical analysis
On an intraday timeframe, the gold price is auctioning in a balanced profile in a narrow range of $1,734.00-1,741.25. Investors should be aware of the fact that the formation of a balanced profile above the prior one bolsters the odds of a bullish reversal.
The 50-period Exponential Moving Average (EMA) (50) at $1,735.83 is overlapping with the gold prices, which indicates a consolidation ahead. Also, the relative Strength Index (RSI) (14) is oscillating in 40.00-60.00, which signals that the market participants are awaiting a potential trigger.
Gold intraday chart
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.
