Gold Price Forecast: XAU/USD consolidates above 1,800, focus shift on US Retail Sales


  • XAU/USD is balancing around $1,810.00 as DXY steadies ahead of US Retail Sales.
  • Upbeat US NFP and inflation have strengthened the chances of a jumbo rate hike by the Fed in June.
  • An establishment below the 200-EMA is advocating gold bears.

Gold Price (XAU/USD) displayed an extreme volatility contraction in the New York session on Friday amid a light economic calendar. The bright metal is expected to deliver similar performance and is hovering around $1,813.55, following the footprints of doldrums in the US dollar index (DXY).

The DXY witnessed a sheer fall on Friday after printing a fresh 19-year high of 105.00. Investors bent towards some profit-booking measures that dragged the asset lower to 104.50. The asset is consolidating around 104.50 and is seeing more downside on mounting selling pressure.

The precious metal has been through a period of high tides backed by the announcements of higher inflationary pressures last week and rising job additions in the labor force in the first week of May. This has bolstered the chances of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed) in June. To achieve price stability, the determination from the Fed may squeeze liquidity from the market at a much more rapid pace.  Now, investors are shifting their focus to the US Retail Sales, which are due on Tuesday. The monthly Retail Sales figure is expected at 0.7%, higher than the prior print of 0.5%.

Gold technical analysis

On the daily scale, XAU/USD has established below the 200-period Exponential Moving Average (EMA) at $1,856.65. The precious metal has been weakened after slipping below the trendline plotted from the 9 August 2021 low at $1,687.78. The Relative Strength Index (RSI) (14) has shifted into a bearish range of 20.00-40.00, which signals more pain ahead.

Gold daily chart

XAU/USD

Overview
Today last price 1811.91
Today Daily Change 0.39
Today Daily Change % 0.02
Today daily open 1811.52
 
Trends
Daily SMA20 1890.1
Daily SMA50 1926.78
Daily SMA100 1883.61
Daily SMA200 1836.01
 
Levels
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 steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

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!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures