Gold Price Forecast: XAU/USD declines towards $1960 as USD rebounds ahead of Core PCE Price Index


  • Gold price is declining towards $1960.00 as investors are getting anxious ahead of US PCE inflation data.
  • The reputation of Gold as a safe-haven amid US banking jitters has ebbed.
  • On a broader note, Gold price is auctioning in a Symmetrical Triangle chart pattern.

Gold price (XAU/USD) has dropped after failing to sustain above $1,970.00 in the Asian session. The precious metal has lost its appeal as fears of the United States banking crisis have receded significantly. The Gold price is expected to extend its correction further as the US Dollar Index (DXY) has shown a recovery move.

The USD Index has rebounded after building an intermediate cushion around 102.40. The USD Index has extended its recovery to near 102.60 as investors are shifting their focus to core Personal Consumption Expenditure (PCE) Price Index data, which is scheduled for Friday.

Federal Reserve’s (Fed) preferred inflation gauge is expected to accelerate by 0.4%, lower than the former expansion of 0.6%. The annual figure is expected to remain steady at 4.7%. A deceleration in the pace of consumer spending on core goods will further ease the chances of one more rate hike by the Fed. Chances are favoring a decline in consumer spending as labor cost index remained lower than anticipated. Also, US banks have tightened credit conditions for households and businesses after the collapse of three mid-size banks.

Meanwhile, S&P500 futures have generated firmer gains in the Asian session after a rangebound auction on Tuesday. US equities have been underpinned on hopes that the Federal Reserve (Fed) will keep rates steady ahead.

Gold technical analysis

Gold price has dropped after a pullback move to near the prior order block region placed in a range of $1,968-1,980 on an hourly scale. On a broader note, the precious metal is auctioning in a Symmetrical Triangle chart pattern. The Gold price is struggling in holding its auction above the 20-period Exponential Moving Average (EMA) at $1,968.00.

Meanwhile, the Relative Strength Index (RSI) (14) has failed in sustaining inside the bullish range of 60.00-80.00.

Gold hourly chart

XAU/USD

Overview
Today last price 1966.58
Today Daily Change -7.12
Today Daily Change % -0.36
Today daily open 1973.7
 
Trends
Daily SMA20 1906.99
Daily SMA50 1890.07
Daily SMA100 1845.92
Daily SMA200 1781.77
 
Levels
Previous Daily High 1975.37
Previous Daily Low 1949.19
Previous Weekly High 2009.88
Previous Weekly Low 1934.34
Previous Monthly High 1959.8
Previous Monthly Low 1804.76
Daily Fibonacci 38.2% 1965.37
Daily Fibonacci 61.8% 1959.19
Daily Pivot Point S1 1956.8
Daily Pivot Point S2 1939.91
Daily Pivot Point S3 1930.62
Daily Pivot Point R1 1982.98
Daily Pivot Point R2 1992.27
Daily Pivot Point R3 2009.16

 

 

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 stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures