Gold Price Forecast: XAU/USD attracts some sellers below $1,980, FOMC Meeting Minutues eyed

Gold price loses ground near $1,978 in early Monday.
US Housing Starts and Building Permit for October came in better than expected.
Gold traders will closely watch the FOMC Meeting Minutes on Tuesday.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) loses traction during the early Asian trading hours on Monday. The softer US Dollar (USD) and a decline in US Treasury bond yields might lift the precious metal, Gold price currently trades around $1,978, losing 0.14% on the day.

The US housing data for October came in better than expected on Friday. The Housing Starts climbed 1.9% MoM to 1.372M, better than the estimation of 1.35M. Building Permit grew 1.1% to 1.487M, above the market consensus of 1.45M. Many Federal Reserve (Fed) officials pushed back against rate cut estimates for 2024, while money markets show traders have priced in 100 basis points (bps) of easing towards December of the next year.

Boston Federal Reserve (Fed) President Susan Collins voiced optimism on Friday that the central bank might bring down inflation without causing major harm to the labor market by being "patient" with the next interest rate rises. Additionally, Fed President Austan Goolsbee said that inflation is on pace to meet the Fed's target as long as house price pressures decrease.

Meanwhile, the US dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, posts its worst weekly decline since mid-July, hovering around 103.45. That being said, a weaker USD might boost the USD-denominated gold.

Last week, US President Joe Biden and China President Xi Jinping met each other for the first time since November 2022. Although the meeting brought certain concrete outcomes, it is doubtful that US-China ties will improve much in the near future. A renewed tension between the two world’s largest economies might benefit safe-haven assets like gold.

Moving on, gold traders will closely monitor the FOMC Meeting Minutues on Tuesday for further impetus. Later this week, the US Durable Goods Orders will be due on Wednesday. The preliminary US S&P Global Manufacturing PMI for November will be released on Friday. Traders will take cues from the data and find trading opportunities around the gold price.

XAU/USD

Overview
Today last price	1978.14
Today Daily Change	-2.73
Today Daily Change %	-0.14
Today daily open	1980.87

Trends
Daily SMA20	1973.8
Daily SMA50	1927.39
Daily SMA100	1929.8
Daily SMA200	1937.15

Levels
Previous Daily High	1993.47
Previous Daily Low	1978.65
Previous Weekly High	1993.47
Previous Weekly Low	1931.67
Previous Monthly High	2009.49
Previous Monthly Low	1810.51
Daily Fibonacci 38.2%	1984.31
Daily Fibonacci 61.8%	1987.81
Daily Pivot Point S1	1975.19
Daily Pivot Point S2	1969.51
Daily Pivot Point S3	1960.37
Daily Pivot Point R1	1990.01
Daily Pivot Point R2	1999.15
Daily Pivot Point R3	2004.83

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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