Gold Price Forecast: XAU/USD balances above $1,820 as DXY cripples, US Retail Sales eyed

  • Gold price has moved above $1,820 as DXY weakens on fewer economic events.
  • The Fed is expected to feature two more jumbo rate hikes in CY2022.
  • A bullish range shift in the RSI (14) has strengthened the gold bulls.

Gold price (XAU/USD) is establishing itself above $1,820.00 after finding an intense responsive buying action below the psychological support of $1,800.00 on Friday. It looks like the firmer rebound in the precious metal has turned the table in the favor of bulls. The bright metal is eyeing an initiative buying interest for a further upside move amid weakness in the US dollar index (DXY).

The DXY has witnessed a steep fall after failing to sustain at fresh 19-year highs of 105.00 last week. A follow-up correction in the DXY after a juggernaut rally has improved the demand for the yellow metal. The recent fall in the DXY could be the result of fully discounted two more jumbo interest rate hikes by the Federal Reserve (Fed) this year. The Fed announced a rate hike by 50 basis points (bps) in May’s first week and the interview of Fed chair Jerome Powell with the Marketplace national radio program has bolstered the odds of two more jumbo rate hikes consecutively.

US Retail Sales

In today’s session, the release of the US Retail Sales will hog the limelight. A preliminary estimate for the monthly US Retail Sales is 0.7% against the prior print of 0.5%. Higher Retail Sales will indicate the confidence of consumers in the economy and eventually, it will strengthen the DXY and weaken the gold prices.

Gold technical analysis

On an hourly scale, a firmer responsive buying action in the gold prices below the psychological support of $1,800.00 has strengthened the asset. The precious metal is trading near the trendline placed from May’s high at $1,909.83. A bullish range shift has been witnessed from the momentum oscillator, Relative Strength Index (RSI) (14). The oscillator has shifted into the 60.00-80.00 range, which signals a firmer upside move ahead. The RSI (14) faced multiple failures while overstepping 60.00. Also, the gold prices have established above the 20-period Exponential Moving Average (EMA) at $1,816.50, which adds to the upside filters.

Gold hourly chart


Today last price 1825.01
Today Daily Change 13.49
Today Daily Change % 0.74
Today daily open 1811.52
Daily SMA20 1890.1
Daily SMA50 1926.78
Daily SMA100 1883.61
Daily SMA200 1836.01
Previous Daily High 1828.85
Previous Daily Low 1799.19
Previous Weekly High 1885.82
Previous Weekly Low 1799.19
Previous Monthly High 1998.43
Previous Monthly Low 1872.24
Daily Fibonacci 38.2% 1810.52
Daily Fibonacci 61.8% 1817.52
Daily Pivot Point S1 1797.52
Daily Pivot Point S2 1783.53
Daily Pivot Point S3 1767.86
Daily Pivot Point R1 1827.18
Daily Pivot Point R2 1842.85
Daily Pivot Point R3 1856.84



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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD came under heavy bearish pressure, now trading below the 1.0100 level and at its lowest for this month. Although the data from the US showed that Existing Home Sales fell sharply in July, the economy seems resilient to global woes.


GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD extended its daily slide and touched its weakest level since mid-July in the 1.1920 price zone. The broad-based dollar strength, as reflected by a more than 0.5% increase in the US Dollar Index, forces the pair to continue to stretch lower in the American session.


Gold bearish breakout underway

Gold bearish breakout underway

Gold is losing ground for a fourth consecutive day, trading at fresh weekly lows. The metal suffers from renewed dollar strength, as US data suggest the economy remains resilient to the latest global woes, leaving room for the Fed to maintain its aggressive stance.

Gold News

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos price will likely take a key turn lower today after the bullish print on Wednesday. XTZ price is at the mercy of global markets rolling over this morning. Either the technical support handles hold – or break under dollar pressure.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!