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.

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

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD could revisit recent lows on a hawkish Fed

EUR/USD could revisit recent lows on a hawkish Fed

EUR/USD is expected to remain under heavy pressure as investors continue to digest the Trump’s victory, while a hawkish message from the Fed at its meeting on Thursday could well motivate spot to retest recent lows near 1.0680.

EUR/USD News
USD/JPY: Prospects for extra gains remain on the table

USD/JPY: Prospects for extra gains remain on the table

USD/JPY cleared the 154.00 barrier in a convincing fashion, leaving behind the key 200-day SMA (151.60) and opening the door to potential extra gains in the short-term horizon.

USD/JPY News
Gold pares losses, consolidates around $2,660

Gold pares losses, consolidates around $2,660

Gold remains under heavy bearish pressure and trades at a fresh multi-week low below $2,700 as markets react to Donald Trump's victory in the presidential election. The benchmark 10-year US Treasury bond yield rises more than 4% on the day, forcing XAU/USD to stretch lower.

Gold News
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory

Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory

Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission (SEC) to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.

Read more
Trump wins: Tax cuts come with a cost

Trump wins: Tax cuts come with a cost

Donald Trump’s victory will ensure a lower tax environment that should boost sentiment and spending in the near term. However, promised tariffs, immigration controls and higher borrowing costs will increasingly become headwinds through his presidential term.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures