Gold Price Forecast: XAU/USD consolidates near $1,990 amid improved risk appetite


  • Gold price gained support as cooling US data signals the Fed to conclude its policy tightening.
  • US Dollar faces pressure after the subdued Nonfarm Payrolls data released on Friday.
  • Improved risk appetite could limit the advance of the precious metal demand.

Gold price hovers around $1,990 per troy ounce during the Asian session on Monday, struggling to continue the winning streak. However, the bullion prices improved on expectations that the US Federal Reserve (Fed) may conclude its monetary policy tightening after the subdued employment data from the United States (US).

However, Gold prices could experience downward pressure amidst a heightened risk appetite as investors may cast out the precious metal in favor of more risk-driven assets, driven by the belief that the US Fed may not attempt an interest rate hike in the upcoming December meeting.

US Dollar Index (DXY) took a notable plunge of more than 1.0% on Friday, influenced by lackluster US Treasury yields following disappointing US labor data. As of now, the 10-year US bond yield is at 4.58%, providing a degree of relief for the prices of the yellow metal.

US Bureau of Labor Statistics unveiled the Non-Farm Payrolls (NFP) data for October on Friday, showing a count of 150K. This missed the expected 180K and represented a notable drop from September's 297K. The month-on-month change in Average Hourly Earnings dipped to 0.2%, deviating from the expected steady 0.3%.

Moreover, the US Unemployment Rate climbed to 3.9%, contrary to the market's expectation of holding steady at 3.8% in October. The ISM Services Purchasing Managers' Index (PMI) dropped to 51.8 from the previous 53.6. On Thursday, the US Department of Labor released the tally of initial claims for unemployment benefits for the week ending October 27, revealing an increase from 212,000 to 217,000.

Gold saw an uptick in demand as a safe haven amid the Israel-Hamas conflict. However, traders could adjust their stance, anticipating a reduced risk premium as concerns ease about the conflict expanding across the broader Middle East. The evolving situation and efforts by multiple nations to broker a ceasefire will be closely monitored for further market insights.

XAU/USD: technical levels to watch

Overview
Today last price 1990.76
Today Daily Change -1.57
Today Daily Change % -0.08
Today daily open 1992.33
 
Trends
Daily SMA20 1949.93
Daily SMA50 1920.95
Daily SMA100 1925.84
Daily SMA200 1933.96
 
Levels
Previous Daily High 2004.13
Previous Daily Low 1983.29
Previous Weekly High 2007.98
Previous Weekly Low 1969.9
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 1996.17
Daily Fibonacci 61.8% 1991.25
Daily Pivot Point S1 1982.37
Daily Pivot Point S2 1972.41
Daily Pivot Point S3 1961.53
Daily Pivot Point R1 2003.21
Daily Pivot Point R2 2014.09
Daily Pivot Point R3 2024.05

 

 

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 recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Forex MAJORS

Cryptocurrencies

Signatures